Bitcoin’s meteoric price increase shows no signs of slowing, and the latest record of all time has priced the asset higher than a 20 gram gold bar.
Over the past six hours, Bitcoin prices have briefly reached more than $ 40,000, according to Tradingview.com. The move has added a further 5% over the past 24 hours and the rally has shown no signs of cooling yet.
Industry observers often call Bitcoin ‘digital gold’ because it is a store of value asset, and this latest price peak has caused prices to rise higher than those for the standard 20 gram bar.
At the time of writing, according to Goldprice.org, gold is currently trading at $ 1912 per ounce, so a 20 gram bar would pay you back $ 38,240. The price of Bitcoin, taken at the same time, was a little over $ 39,000.
It now takes more than a whole, 20 grams, gold bar to buy a single # Bitcoin pic.twitter.com/B8YsAgyRJL
– Documentation of Bitcoin (@DocumentBitcoin) 7 January 2021
Secretary and Vice-Chairman of the DigiByte Foundation, Rudy Bouwman, while using his own cryptocurrency said:
“Bitcoin will become like gold bars, but only a valuable value.”
This rally is slightly different than in 2017, as it is driven primarily by institutions that, unlike retailers, hold the asset for long-term investment rather than turning it around for a short-term profit. This idea forces the store of value properties of Bitcoin, making it comparable to gold than ever before.
In terms of performance, Bitcoin has achieved a whopping 378% over the past 12 months, while gold has only been able to achieve 21.6% in the same period.
In addition, Bitcoin still holds new records of all time, but gold prices retreated 7.6% of them, which on August 6, 2020 was $ 2,070 per ounce.
Gold bug and eternal Bitcoin basher, Peter Schiff, finally acknowledge that Bitcoin is actually taking away the demand for gold, as evidenced by the figures.
“To the extent that Bitcoin is actually declining any demand for gold, it makes Fed governors extremely happy. A rising gold price is the biggest fear for central bankers. Bitcoin is their best friend, which could possibly explain why regulators are not in a hurry to help the bubble. ‘
With the price of a single Bitcoin now higher than a bar of gold, the question remains; how much further can it climb?