Why Bitcoin May Be Better Than Gold


Why Bitcoin is Better Than Gold, with Wences Casares | Big Think

Why Bitcoin May Be Better Than Gold

Why Bitcoin May Be Better Than Gold

  • In the near future, bitcoin may be more productive than gold.

  • Correlation between gold and BTC begins to weaken in favor of cryptocurrency.

  • Supporting factor for bitcoin is its dual nature.

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Comparison of the dynamics of prices for gold and bitcoin leads some members of the crypto community to think that in the near future military-technical cooperation may be more successful than the precious metal.

Why Bitcoin May Be Better Than Gold

The reason for this comparison was Bitcoin’s bullish breakout of the $ 12,000 mark and the recent profit taking in gold..

Friendship apart?

Recently, the markets have been actively analyzing the correlation of the price dynamics of bitcoin gold. Even such mainstream heavyweights as Bloomberg experts have recognized the existing connection between them. Both Bitcoin and Gold are now considered store of value, in which investors seek protection against global shocks and inflation..

However, now analysts are beginning to speak more actively about the fact that divergence may again appear between assets, and in favor of bitcoin. Thus, PlanB, a popular trader in the crypto community, shared a chart showing the value of Bitcoin in gold:

“If we remove the US dollar from the equation, then 1 BTC = 6 ounces of gold, and this figure rises,” he commented..

Why Bitcoin May Be Better Than Gold

Another crypto enthusiast, The Moon, supported him in the comments. He noted that the USD is now not the best measure of value, since it itself is getting cheaper. Perhaps, he suggested, over time, Bitcoin may turn out to be a more reliable measure of the value of gold..

It’s worth noting that this is not the only Twitter post of this kind. Entrepreneur and investor Raoul Pal also believes that bitcoin and gold are currently on an unequal basis. He cited a graph according to which, in the short term, gold will fall in price against bitcoin:

How many people hold this point of view? Join the discussion in our Telegram channel – and you will find out everything!

What is the peculiarity of bitcoin

Gold traditionally strengthens in times of crises or panic in the markets. Meanwhile, the Bitcoin situation looks more confusing. He has repeatedly demonstrated his dual nature. Some time ago it was considered to be a high-risk speculative asset and to track its correlation with stock markets. He still periodically moves in tandem with the S index&P 500, respectively, coming off gold.

An important difference between bitcoin and gold is the fact that BTC, despite its still weak mass adoption, still has real market value. He is a means of payment. This adds investment value to it during periods of calm markets and dying risks..

On the other hand, bitcoin is an independent, decentralized currency. It keeps itself apart from fiat means of payment, issued by the state and controlled by it. This adds investment value to Bitcoin as a defense against economic crises and inflation..

Why Bitcoin May Be Better Than Gold

This duality can play into the hands of cryptocurrency during periods of both stability and crises. Bitcoin may follow the rally in gold – but when gold starts to roll off recent highs, BTC may find other reasons to hold on to the top.


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