Bitcoin has the physical characteristics of products like gold and precious metals, but it's even better because of the very low cost of production, according to Jeff Currie of Goldman Sachs.
Bitcoin and other crypto-currencies are very similar to oil and gold, but will go even further than traditional products because of their very low maintenance costs, said Jeff Currie, Head of Commodity Research. at Goldman Sachs.
In an interview with CNBC, the commodities expert said, "If you look at how Bitcoin is trading, it is trading very much like a nascent product, an emerging technology. "
"When we think of Bitcoin as a commodity, we have to think about its physical characteristics, its financial characteristics and its economic characteristics. "
"Physically, it is produced with a lot of power, a lot of capital and a little work, very similar to oil. "
"Think about having a guy on an oil rig producing a lot of oil from a lot of capital. "
"If you think of its ability to be used as gold or precious metals, one thing that separates it from other products is its very low cost of storage and its ease of concealment. "
"It's better than diamonds. "
The CEO of the largest Chinese Exchange (BTCC), Bobby Lee said he believed that Bitcoin and other cryptocurrencies would be owned by everyone, just like bank accounts and real estate.
Mr. Lee said that there could be only five years left before everyone has Bitcoins.
He said:
"I think in five years, ten years from now, crypto-currencies will be much more invasive.
"I think people in all walks of life will have crypto-currencies just like they have bank accounts. "
"The way people participate in the transportation system, they own cars or they own real estate or they own shares or they hold foreign currency. "
"For a lot of people, wealth is not just in paper money, they also have their possessions and assets in other asset classes and I think that's how it's going to be.
