Bitcoin is digital gold, essentially a reserve currency but not very useful for small daily transactions. All of the criticisms of Bitcoin can be equally leveled against gold, and have been (“barbaric relic” as Bernanke called it). And yet even central banks still hold massive amounts of gold. So I don’t see any reason why Bitcoin can’t fill the same role that gold does in the modern financial system.
Unlike gold, Bitcoin has zero intrinsic value and hasn't been used by as currency by civilisations throughout human history.
Central banks would be crazy to hold Bitcoin. If a better technology came along which had mass adoption Bitcoin could be made worthless overnight. Many people predicted this could happen in 2017 during the rise of Ethereum.
Personally I can't ever see bitcoin surpassing the the market cap. of gold.
Gold has intrinsic value based on the industrial and jewelry uses: you could lose a lot more over the industrial demand point but it won’t go below that point because people use it for things other than speculation.
In contrast, random hashes have no value outside of a particular community consensus. You can’t do anything with them and the ones in the Bitcoin blockchain have no more inherent value than those in any other network.
