In an article published by Investment.com, Schlossberg noted that Bitcoin’s current valuation metric of a store of value and universal adoption means the asset has attained its fundamental value. Therefore, given these valuations metrics, Bitcoin will likely appreciate in value. He further pointed out that Bitcoin cannot be valued based on traditional metrics since the asset does not generate income streams, a factor that makes it impossible to value the digital currency based on discounted cash flow. Schlossberg added that the number one ranked cryptocurrency is now a superior form of gold because it offers holders the freedom to manage their holdings.
Bitcoin and gold comparisons
Interestingly, he acknowledged that both Bitcoin and gold have similarities because they have no intrinsic value and generate no cash flow. However, he stressed that Bitcoin has the upper hand over gold due to its portability. He also cited the decentralized nature of Bitcoin as a critical aspect of the asset’s store of value status. Schlossberg compared Bitcoin to offshore banking assets like cash and bonds that holders ‘hide’ from government control and taxation. The expert stated that the offshore market has a valuation of about $35 trillion, and if a section of the funds is allocated to Bitcoin, the asset’s value can triple. According to Schlossberg, Bitcoin still has many fundamental upsides that can be a catalyst for price surges.
