Bitcoin and digital assets like NFTs and virtual real estate are often hyped as the future of value, much like traditional assets were in previous bubbles. Bitcoin, often touted as “digital gold,” lacks the tangible qualities of real gold or silver. It’s not unique; there are thousands of other cryptocurrencies, many with similar, if not identical, functionalities. As an entirely digital asset, Bitcoin has one glaring flaw: it’s dependent on the internet. In a crisis, if the internet goes down, so does access to Bitcoin.
Virtual real estate—parcels of “land” in digital spaces—is another example of an overhyped asset with little inherent value. Unlike physical land, which is finite and can yield tangible benefits like rental income, digital land is only as valuable as the platform and demand sustaining it. Meta and other metaverse platforms may sell this digital land as the next big thing, but if user interest declines or the platform fails, these digital parcels become essentially worthless.
Take, for instance, how speculative assets would hold up in a cyber crisis. Imagine if a national Bitcoin reserve faced a cyberattack—what’s more likely to be hacked: digital wallets or a vault of gold? Physical assets like gold and silver not only have investment value but also essential industrial applications. Gold is critical in electronics, dentistry, and aerospace; silver powers electronics, solar energy, and even medical technology. These metals are valued not just for investment but for their real-world utility.
The market shows signs of an “everything bubble,” driven by speculative investments and loose monetary policies. Digital assets, from Bitcoin to virtual real estate, reflect this hot money chasing gains without lasting value. Major players like JPMorgan CEO Jamie Dimon, who once criticized Bitcoin, are joining the crypto party—playing it smart to profit while they can. But once this bubble bursts, it won’t just be Bitcoin falling; the crash will likely hit tech stocks like Tesla, AI companies, and, yes, the virtual land boom.
When the dust settles, it’s tangible assets with real-world uses—like gold, silver, and physical real estate—that will retain their value. The allure of digital assets may be strong now, but they could ultimately share the same fate as past speculative bubbles.