Bitcoin price claimed another record high on Friday, this time against gold, providing further confirmation that demand for digital assets is on the rise.
According to U. Today, the bitcoin price is gold peaked at 15.62 ounces during the early morning.
2020 was a turning point year for Bitcoin as institutional adoption helped catalyze a bull market contrary to what we’ve seen so far in its 11-year history. The largest cryptocurrency by market cap, Bitcoin saw a massive increase of around 300% in 2020.
Gold also posted impressive gains for the year, although they paled in comparison to Bitcoin’s rapid rise. The spot price of the yellow metal ended the year with a gain of 25%.
Bitcoin’s biggest proponents believe that the digital currency is eating up gold’s market capitalization as investors opt for the asset’s efficiency, portability and proven scarcity. Amazingly, that view is also shared by JPMorgan Chase analysts, who believe Bitcoin’s digital gold story withdraw capital from precious metals.
Some believe that Bitcoin’s supply tightness could push prices up over the course of 2021. As Cointelegraph recently reported, digital asset manager Grayscale reported bought the BTC mine almost three times in December. Demand from PayPal, Cash App, and others has also contributed to an apparent shortage of BTC.