China's Largest Bank Compares Bitcoin and Gold Scarcity

Bitcoin and other digital assets have transformed the cryptocurrency business by transforming the financial and technical environment. The Industrial and Commercial Bank of China (ICBC), the world's biggest bank by assets, has praised digital currencies' development and ability to change the financial environment. The bank emphasized Bitcoin, comparing its scarcity to gold.

Bitcoin Scarcity Similar to Gold
The Macro Economy In-depth Analysis by ICBC bank praised digital currencies for their importance in a changing financial landscape. The paper was called a love letter to Bitcoin and Ethereum by VanEck head of digital asset research Matthew Sigel on X (previously Twitter).


The data shows that human imagination has led to an exponential development of digital money varieties and applications. The paper states that market demand drives the advancement of digital currencies, as seen by Bitcoin, Ethereum, and central banks' investigations into official digital currencies.

The bank also compared Bitcoin to gold, arguing it had scarcity. This comparison was performed given BTC's mathematical consensus, which tackles its faults of being hard to divide, hard to determine authenticity, and heavy to carry. “Its monetary attributes are gradually weakening, while its asset attributes are constantly strengthening,” the paper said.

ICBC's study compares Bitcoin's 21 million coins to gold's restricted supply, which has underpinned its value. BTC, sometimes known as digital gold, has been lauded for its rarity, with only 21 million coins ever generated. Scarcity has contributed to the crypto asset's quick rise in value and appeal.

The example shows how BTC is gradually becoming the digital equivalent of gold. The fact that one of the world's largest financial organizations has recognized Bitcoin's scarcity gives it legitimacy and appeal to institutional and individual investors.

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