The world’s largest bank, the 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 sector. This document provides an analysis of the top two 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 just symbolic, as the report outlines the shared characteristics between the two, such as scarcity. “Bitcoin maintains scarcity similar to gold through mathematical consensus, while solving its issues of divisibility, authenticity verification, and transport inconvenience. 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 been continuously upgrading 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 digitalized physical infrastructure.
Disclaimer:
The opinions expressed by the author or individuals mentioned in this article are for informational purposes only and do not constitute financial or investment advice. Investing or trading cryptocurrencies involves the risk of financial loss.
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