Bitcoin and other cryptocurrencies are very similar to oil and gold but will go even further than traditional commodities thanks to their very low cost of maintenance, said Jeff Currie, head of commodities research at Goldman Sachs.
In an interview with CNBC, the commodities expert said: “If you look at the way bitcoin is trading, it is trading very similarly to a nascent commodity, a nascent technology.
“When we think about bitcoin as a commodity you 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 bit of labour, very similar to oil.
“Think about having one guy on an oil rig producing a lot of oil from a lot of capital.
“If you think about its ability to be used as gold or precious metals, one thing that separates it from other commodities is it’s very low cost to store and very easy to conceal.
“It’s better than diamonds.”
Speaking exclusively to Express.co.uk, CEO of China’s first bitcoin exchange, Bobby Lee said that he believes bitcoin and other cryptocurrencies will be owned by everyone just as much as bank accounts and real estates.
Mr Lee said it could be as little as five years before everyone owns bitcoin.
He said: “I think in five years, ten years crypto will be much more pervasive.
“I think people in all walks of life in society will own crypto the way people have bank accounts.
“The way people participate in the transportation system, they own cars or they own real estate or they own stocks or they hold foreign currencies.
“For many people, wealth is not just in paper money but they have their holding and assets in other asset classes and I think that’s how it’s going to be.”