The world’s largest bank, Industrial and Commercial Bank of China (ICBC), has recently dubbed Bitcoin (BTC) as “digital gold” and Ethereum (ETH) as “digital oil” in a report that is making waves in the cryptocurrency industry. This document provides an analysis of the two leading cryptocurrencies by market value and offers a promising outlook on the increasing demand for digital assets.
According to Matthew Siegel, head of digital assets at VanEck, who shared insights from the report, ICBC is optimistic about the future of cryptocurrencies. The comparison of Bitcoin to gold is not merely symbolic, as the report details the characteristics they share, such as scarcity. “Bitcoin maintains scarcity similar to gold through mathematical consensus, while solving its problem of being hard to divide, hard to identify authenticity, and inconvenient to transport. Its monetary attributes are gradually weakening, while its asset attributes are constantly strengthening.”
The report not only sheds light on Bitcoin but also praises the unique qualities of Ethereum, labeled as “digital oil.” ICBC admires Ethereum’s continuous improvement in areas such as security, scalability, and sustainability, which are crucial for future adoption and technological development. “Ethereum has continuously upgraded its technology in terms of security, scalability, and sustainability, providing technical power for the digital future…”
Furthermore, the report highlights Ethereum’s ability to support a diverse range of applications due to its Solidity programming language and Ethereum Virtual Machine (EVM). This has enabled robust support for innovations in decentralized finance (DeFi) and non-fungible tokens (NFTs), expanding its use to even include digitized physical infrastructure.
Disclaimer:
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment, or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.
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