Bitcoin’s rapid price surge shows no signs of slowing down, and the latest record high has priced the value higher than a 20-ounce gold bar.
Bitcoin prices in the past six hours short at $ 40,000 according to Tradingview.com. The move has added an additional 5% in the past 24 hours and the rally is showing no signs of cooling down yet.
Industry observers often refer to Bitcoin as “digital gold” because it is a valuable asset, and this latest price spike pushed prices higher than those for the standard 20 ounce gold ingot.
At the time of writing, gold was currently trading at $ 1912 / oz Goldprice.org, so a 20-ounce bar would cost you $ 38,240. The price of Bitcoin, taken at the same time, was just over $ 39,000.
– Document Bitcoin (@DocumentBitcoin) January 7, 2021
Secretary and Vice Chairman of the DigiByte Foundation, Rudy Bouwman, promoting his own cryptocurrency said:
“Bitcoin will become like bars of gold, just a store of value.”
This rally is slightly different from 2017’s as it is mainly driven by institutions that, unlike retailers, tend to hold the asset for long-term investment rather than turn it around for short-term profit. This idea forces it store with value properties of Bitcoin, making it more comparable to gold than ever before.
In terms of performance, Bitcoin has gained a whopping 378% in the past 12 months, while gold has only gained 21.6% in the same period.
In addition, Bitcoin is still making new record highs, but gold prices are down 7.6% from theirs, which was $ 2,070 / oz on August 6, 2020.
Gold bug and perpetual Bitcoin basher, Peter Schiff, finally allowed that Bitcoin actually took away the demand for gold, as those numbers show.
“To the extent that Bitcoin actually does something about it ask away from gold, that makes Fed governors extremely happy. Rising gold prices are what central bankers fear most. Bitcoin is their best friend, which may explain why regulators are in no rush to pop the bubble. “
With the price of a single bitcoin higher than a bar of gold, the question remains; how much further can it climb?