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Bitcoin’s meteoric rise in price shows no signs of slowing down and its latest all-time high valued the asset above a 20-ounce gold bar.
In the past six hours, Bitcoin prices have briefly exceeded $ 40,000 according to Tradingview.com. The move has added another 5% over the past 24 hours and the rally is not showing signs of slowing down yet.
Industry watchers often call Bitcoin ‘digital gold’ because it is a storehouse of valuable assets, and this latest price spike has pushed prices higher than standard gold bullion. of 20 ounces.
At the time of writing, gold is currently trading at $ 1,912 / oz according to Goldprice.org, so a 20-ounce bar would set you back $ 38,240. The price of Bitcoin, taken at the same time, was just over $ 39,000.
It now takes more than a whole 20 ounce gold bar to buy a single #Bitcoin pic.twitter.com/B8YsAgyRJL
– Document Bitcoin (@DocumentBitcoin) January 7, 2021
Secretary and Vice President of the DigiByte Foundation, Rudy Bouwman, while touting his own cryptocurrency said:
“Bitcoin will become like gold bars, only a store of value.”
This rally is slightly different from that of 2017 as it is primarily driven by institutions which, unlike retail traders, tend to hold the asset for a long term investment rather than flipping it for short term profit. This notion strengthens Bitcoin’s store of valuable properties, making it more comparable to gold than ever.
In terms of performance, Bitcoin has made a whopping 378% over the past 12 months, while gold has only managed to gain 21.6% over the same period.
Additionally, Bitcoin is still hitting new all-time highs, but the price of gold has fallen 7.6% from theirs, which was $ 2,070 / ounce on August 6, 2020.
Gold bug and perpetual Bitcoin basher, Peter Schiff, finally admitted that Bitcoin was in fact taking demand for gold, as evidenced by these numbers.
“To the extent that Bitcoin takes away all demand for gold, it makes the Fed Governors extremely happy. The rise in the price of gold is what central bankers fear the most. Bitcoin is their best friend, which may explain why regulators are in no rush to help burst the bubble. “
With the price of a single Bitcoin now higher than that of a gold bar, the question remains; how far can he go?
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