the comparison with Bitcoin (BTC)

the price of an ounce of gold decreased by 33% since 2011. Bitcoin (BTC) in 2011 was trading at around $ 3, and it's increased by more than 120000% about since.

Let 's look together at expert opinion and some comparison details between gold and Bitcoin, also called digital gold.

An unprecedented increase

Tommy Mustache, crypto-investor and fervent defender of the concept of "freedom of money" and decentralized systems, recently recalled his many followers, through twitter, that the value of bitcoin (BTC) has increased by more than 118,000% since 2011.

If you bought Bitcoin instead of gold in November 2011, you will still be up 118,000% while gold is down 33% over the same period.

If Bitcoin can one day conquer 20% of the gold market, it will be a market capitalization of $ 1.5T.

Do you see young people buying gold or a bitcoin? pic.twitter.com/0iL9gzpPqW

– Tommy Mustache (@ tommyp408) November 25, 2018

Mustache pointed out that p.on the contrary, in the last 7 years, it has lost about 33% of its value. In fact, the price by the weight of an ounce of gold fell from its maximum value of $ 1,800 to about $ 1,200. Meanwhile, BTC traded at an average value of $ 3, but has since increased its value to about $ 3,800 today.

Bitcoin accounts for 1% of the market capitalization of gold

The current market capitalization of bitcoins barely represents 1% of the total value of the market capitalization of gold, over $ 7.5 trillion. Commenting on the price and the distribution of the investments, Mustache formulated a reflection:

If Bitcoins conquer only 20% of the gold market, it will be a market worth $ 1.5 billion. Do you see more young people today who buy gold or Bitcoins?

The reflection of Mustache is not unfounded.

About One in four American mills use cryptocurrencies In a way, we have also discussed it in a previous article. the the data is confirmed by a new report from Edelman titled "Millennials with Money", released last month.

The results of the research revealed that beyond 31% have an interest or heard about the world of crypto-currencies. The relationship is based on a sample of 1000 people aged 24 to 38 years (which are considered millennia) through a online survey.

Deidre H. Campbell, world president of the financial services sector of Edelman, said:

Anyone who owns bitcoins tells me that he would like to have bought it first. I think that there is a younger generation that is exposed to greater risks for its portfolio and eager to try new types of investments.

Discordant opinions

Lou Kerner, co-founder and partner of CryptoOracle.io, a venture capital firm based in New York, focused on investing in startups related to the blockchain, had already said that bitcoin is "much, much better"Compared to gold.

Kerner noted that BTC is "functionally" much better compared to gold in digital form, while thegold is physical, so it's harder to store and manage.

However, everyone does not consider that the comparison between gold and bitcoin is valid. A detailed article on the official website of American Bullion reports:

Gold will always be precious. If the USD collapses with the banking system, gold will be there to facilitate trade and build wealth for each person. It is primarily a conservative badet and its primary function may resemble that of insurance. Bitcoin, by comparison, is much more aggressive and flexible. It is easier to use BTC to make transactions (legally and practically). But it has a strong speculative component and there is no reason for Bitcoin to remain valuable forever. Bitcoins do not have intrinsic value. Gold is appreciated for its beauty and metallic properties. Bitcoin has only one digital function.

And what do you think? Do you think that Bitcoin could one day replace the concept of security conferred by gold today? let us know with a comment or in our social groups.

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The largest Italian community dedicated to cryptographic coins: Italian Crypto Club (ICC)

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