Amidst the public spotlight on the rising gold prices, there is actually a financial illusion that often goes unnoticed by many. Although nominally the price of gold seems stable or increasing, the purchasing power of the dollar — the commonly used fiat currency — is slowly diminishing. This phenomenon reflects hidden inflation that unconsciously erodes the value of our money.
Such inflation is often not realized by the public. The amount of money in wallets may appear the same, but its value in purchasing goods and services gradually declines. This is where the role of Bitcoin begins to emerge.
Bitcoin is now considered by some as 'digital gold' — an asset capable of maintaining its value amidst global economic turmoil and inflation. The value of Bitcoin continues to rise significantly, while the dollar continues to erode and gold prices begin to stagnate.
CTO BTC Direct, Bas Peters, conveys a similar sentiment. In his LinkedIn post, he highlights that many people are deceived by the price growth of an asset, while in reality, it is just an illusion due to the depreciation of fiat currency. He said, 'Often, what appears to be growth is merely a shadow of fiat currency that is losing stability.'
With the role of Bitcoin as a value protector becoming increasingly clear, a big question arises: Are we witnessing a transition from the era of gold to the era of crypto? Will Bitcoin become the new anchor of value amidst global economic uncertainty?
Time will answer that. But one thing is certain: more and more people are starting to open their eyes, and Bitcoin is no longer seen merely as a speculative asset, but rather as a relevant form of value protection in this digital era.
