Bitcoin is now worth more than a 20-ounce gold bar
Now that Bitcoin has passed $40,000, a single BTC is worth more than a 20-ounce gold bar – how much more will it grow?
Bitcoin’s impressive growth shows no signs of slowing down: its latest All-Time High has sent the asset’s price soaring beyond the value of a 20-ounce gold bar.
According to TradingView.com, BTC has surpassed $41,000 in the past few hours
The asset has been unstable for the past few days, but so far there has been no collapse that would jeopardize the continued appreciation of the dominant crypto.
Experts in the field often refer to Bitcoin as „digital gold“, as it is an asset with many of the characteristics of a Crypto Engine store of value, much like precious metal. At the time of writing, gold is trading for $1,890 an ounce according to Goldprice.org. In other words, a 20-ounce bar is worth about $37,800.
„It now takes more than a 20-ounce gold bar to buy a single #Bitcoin.“
It now takes more than an entire, 20 ounce, gold bar to buy a single #Bitcoin pic.twitter.com/B8YsAgyRJL
– Documenting Bitcoin (@DocumentBitcoin) January 7, 2021
DigiByte Foundation secretary and vice president Rudy Bouwman said:
„Bitcoin will become like gold bullion, it will just be a store of value.“
This rally is slightly different from that of 2017, in that it is mainly driven by institutions that, unlike retail investors, tend to hold the asset for the long term rather than selling it to make a profit in the short term. This behaviour further reinforces the idea that Bitcoin is a store of value, making it more comparable to gold than ever before.
In terms of performance, over the past 12 months Bitcoin has achieved a massive 378% growth, while gold only managed to gain 21.6% over the same period.
Moreover, Bitcoin is still chasing new all-time highs, while gold prices have fallen 7.6% from their peak of $2,070/ounce on 6 August 2020.
Peter Schiff, a notoriously sceptical of BTC, finally admitted that Bitcoin is in fact taking market share away from gold:
„Bitcoin is actually sucking some of the demand out of gold, which makes the 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 hurry to burst the bubble.“
With the price of a single Bitcoin now higher than that of a gold bar, the question remains: how much higher can it go?