Bitcoin has experienced a remarkable run since it was born in 2009. Today, one bitcoin is worth more than $7,000. But as the gold mining industry has experienced a prolonged period of negative returns, it might be time to revise your investments.
On the surface, Bitcoin looks like a veritable goldmine. After all, gold has been around for thousands of years, and it could be argued that Bitcoin is the ultimate form of gold. There is only one problem: Bitcoin is now trading at a higher price than gold.
We regularly report on how the Bitcoin price is affected by the ratio between the price of gold and the price of Bitcoin. If the price of gold is lower than the price of Bitcoin, it means that the Bitcoin price is rising. So to answer the question “how to buy gold with Bitcoin?” the answer is to buy gold with Bitcoin.. Read more about gold compared to bitcoin and let us know what you think.
Gold fanatics continue to be mocked by Bitcoin (BTC) supporters as the precious metal’s 10-year returns become negative.
Fresh data indicates that the XAU/USD traded 3.7 percent lower on Tuesday than it did on the same day in 2011.
Regardless of the era, gold fails to wow.
1 month candle chart for XAU/USD. TradingView is the source of this information.
Gold and its investors have had a terrible week, with a steep drop on Monday compounding losses that have defined most of 2021.
XAU/USD, which began the year at $1,941, was down to $1,729 at the time of writing, a loss of 10.9 percent year to date.
Previously, longer-term performance has protected gold from humiliation; now, even a 10-year hodl is a risky investment as of this month. On August 1, 2011, the precious metal was trading at $1,830, up 5.8%.
Meanwhile, Bitcoin has outpaced not just gold, but every other commodity in terms of dollar growth, and shows no signs of slowing down to offer gold a competitive edge.
“One bitcoin now equals 21 ounces of gold. Last Friday, the trading site FTX described the situation as “poetic.”
As of Tuesday, gold was trading at only 0.038 BTC per ounce as measured in BTC. In mid-April, it reached all-time lows of 0.02746 BTC, just as BTC/USD hit current all-time highs of $64,500.
In other words, 1 BTC currently equals almost 600 grams of gold.
1 month candle chart for XAU/BTC. TradingView is the source of this information.
“It’s not digital gold!” exclaims the narrator. ”
Gold industry members, like Schiff Gold CEO Peter Schiff, were among the few prominent champions of the precious metal, which was perhaps expected.
Gold markets are shaken by a flash collapse, but Bitcoin remains robust.
The notorious Bitcoin critic blamed gold’s rise on macro market reasons, claiming that despite its success, Bitcoin will never be able to equal it.
He responded this week, “Bitcoin increasing as gold falls does not imply it has replaced gold as an inflation hedge.”
“Gold is falling since markets mistakenly believe that by reducing QE and increasing interest rates, the Fed would be able to effectively combat inflation. Because Bitcoin isn’t digital gold, it doesn’t trade like gold. ”
His viewpoint contrasts with that of a growing number of non-crypto voices this year, including investing tycoon Ray Dalio and US Federal Reserve Chair Jerome Powell. However, the former recently said that he would still choose gold over Bitcoin.
The cryptocurrency market has taken a turn for the worse over the past year, with Bitcoin’s value plummeting from $5,000 to under $3,000 in 2017. However, the decline has been largely because of a massive correction in the cryptocurrency market, not because of a change in the value of Bitcoin itself. In fact, returns on Bitcoin are still very attractive compared to other assets, with 10-year returns now negative.. Read more about is bitcoin digital gold and let us know what you think.
This article broadly covered the following related topics:
- gold compared to bitcoin
- bitcoin vs gold performance
- $2.5 billion bitcoin
- bitcoin vs gold volatility
- is bitcoin digital gold