Bitcoin vs Gold: Gold’s flash crash has all the ‘finger prints’ of a…

The age-old Bitcoin vs. Gold debate is in the limelight quite often and has picked up again, with Bitcoin’s recent price action. While Gold’s price crashed and is in negative territory since the start of the year, Bitcoin was up by 50%. Does this reflect on which is the “better store of value” arguments?

Gold’s price went through a major correction as it dipped by roughly 5% in a matter of hours. Despite a recovery, the current price is still about 9% down since the start of the year.

On the other hand, Bitcoin was trading above the $45.5k mark with a surge of about 2.5% in 24 hours.

In addition to this, Bitcoin’s 10-year ROI (Return On Investment) has hit +457,703% to make its stand against gold, silver, and traditional time-tested stocks. It outperformed Gold in terms of ROIs or return(s) on investment(s). According to Wu Blockchain, the ROI of gold in the past 10 years has been around 0 percent (cumulative).

The Chinese journalist mentioned in his tweet,

“According to Trading View data, gold fell by nearly 5% today, and the 10-year investment return once fell to a negative number. CoinMarketCap data shows that in the past 24 hours, Bitcoin has fallen by nearly 2% and Ethereum has fallen by more than 5%.”


Given the long-standing rivalry between Gold and Bitcoin, many members of the cryptocurrency community had something to say. Forex trader and analyst Peter Brandt took to Twitter to express his viewpoints on Gold’s price correction.

In another tweet, Kevin Zhang, vice president of crypto mining company Foundry Services, jokingly asked whether the yellow metal was under a 51 percent attack. Having said that, here’s an interesting argument.

When comparing Gold to Bitcoin, the former has been a tradeable asset for more than 50 years on markets whereas the latter’s trading past is only around 10 years old.

Gold’s ROI, in the beginning, clocked around or even more, than 2,000% growth since the asset was more volatile due to immaturity. Similarly with Bitcoin, due to its immaturity, institutional interests, size as well as fluctuations in its price, it can showcase a great market performance.

Still, with the the doubts revolving around its long-term growth, its rivalry with Gold, in the long run, will be worth watching.

 

 

Bitcoin Vs Gold – Is PlanB comparing apples to oranges, or is BTC at $135K still in play?

  • PlanB reignites Bitcoin vs gold debate: Will BTC reach $135K by Dec 2021?
  • PlanB’s latest tweet reignites the Bitcoin vs gold debate
  • At current rates, 1 BTC is equal to 18 ounces of gold
  • PlanB predicts that BTC denominated in gold is set to rise further

PlanB, the famed crypto analyst and stock-to-flow expert, has broken his self-proclaimed six-week hiatus from crypto predictions. In his latest tweet, he has once again bought the Bitcoin vs gold debate at the center by claiming that BTC denominated in gold will rise in value in accordance with BTC value.

It is a universal fact that gold has been a time-tested storehouse of value. For centuries, people have used gold to store and pass on their wealth to future generations. Governments have relied upon gold to secure their financial credibility.

The gold standard was the De Facto currency benchmark until 1971 when the U.S. dollar was delinked from gold.

Now, Bitcoin promises similar value storehouse characteristics. Modern financial pundits often compare Bitcoin with gold considering its price movements in volatile times, which mimic other safe-haven assets. But to what extent is the Bitcoin vs gold debate valid, and for how long?

PlanB opens up Pandora’s box – BTC denominated in gold sends positive vibes

For a few years now, Bitcoin price movements and correlation with gold have fascinated crypto analysts. During the 2020’s March crash, Bitcoin showed similar safe-haven characteristics by rising in accordance with the turbulent times. So far, Bitcoin has outperformed gold by a significant margin, especially in the last year.

PlanB, known for his highly bullish crypto tweets, claimed that BTC could touch $2,88,000 by 2024. The bullish BTC price prognosis comes from his famed stock-to-flow analysis, which uses complex forecasting technical indicators.

Despite the recent price dips and stagnation, the price is going to entice the traders and investors to HODL.

His studies always seem fixated on overly bullish long-term price goals. Even in the worst case, PlanB says that BTC would cross $1,35,000 by the end of 2021. These lofty price levels may seem unreal, but he has a huge fan base that believes in his technical analysis.

BTC/USD stock-to-flow model – Is Bitcoin vs gold comparing apples to oranges

With an all-time high of $64,000, Bitcoin is far from the PlanB’s predicted levels. Multiple charts show that heavy to very-heavy resistances are blocking the Bitcoin’s journey to fresh highs. At present prices, 18 ounces of gold are equivalent to 1 BTC.

Bitcoin price is hovering near $34,000, and it is a long journey from here to $1,35,000, considering there are only five months left in 2021. Calls for another bearish phase in BTC are growing as the digital asset aims to integrate more into the mainstream finance.

PlanB’s latest cryptic tweet has certainly ignited the Bitcoin vs gold debate in the crypto circles no matter the price.