Bitcoin’s meteoric rise shows no signs of slowing, and the latest record put the asset above 20 ounces of the gold bar.
Bitcoin prices have been in excess of $ 40,000 for some time in the past six hours, according to Tradingview.com. This move has gained another 5% in the last 24 hours, and the gains are showing no signs of calming yet.
Bitcoin is often referred to by industry experts as “digital gold” because it is a store of valuable assets, and recent peaks have pushed those prices higher than a standard 20 ounce gold bar.
At the time of writing, gold is currently trading at $ 1912 an ounce, according to Goldprice.org, so a 20 ounce bar will set you back $ 38,240. The price of the bitcoins taken at the same time was just over $ 39,000.
DigiByte secretary and VP Rudy Bowman said while promoting his cryptocurrency:
“Bitcoin will be like gold bars, just a store of value.”
This rally is a little different from the 2017 rally because it is primarily run by institutions that, unlike retailers, tend to hold the asset for long-term investment rather than use it for short-term profit. This idea forces Bitcoin’s value to be stored, making it more comparable to gold than ever before.
In terms of performance, bitcoin has hit 378% in the past 12 months, while gold has only hit 21.6% in the same period.
In addition, Bitcoin is still making new highs, but gold prices have dropped 7.6% compared to prices that were $ 2,070 an ounce on August 6, 2020.
Peter Schiff, the persistent imbalance of gold and bitcoin, Peter Schiff finally admitted that bitcoin actually took over the demand for gold, as these numbers show.
“To the extent that Bitcoin is taking on demand for gold, this is very pleasing to the Fed governors. The biggest fear in central banks is the high price of gold. Bitcoin is their best friend, which may explain why regulators have been slow to help. “Burst the bubble.”
Since the price of a single bitcoin is now higher than a piece of gold, the question remains; How far can he go?