The amount of gold needed to buy one BTC, “digital gold,” is back on the rise again on the back of BTC’s enormous gains.
‘Digital gold’ becomes more expensive to buy, with gold
As Bitcoin (BTC) went from trading under the $48,000 on Oct. 4 to currently trading above the $54,000 mark, the Bitcoin to Gold ratio back around 30, levels this metric witnessed at the peak of the bull run in May this year.
This ratio denotes the number of ounces of gold that it would take to buy one token of BTC. As the ratio rises, it indicates that Bitcoin is outperforming Gold, whereas the ratio declining would indicate that Gold is outperforming BTC.
This current rising trend took the ratio quickly from 25 at the end of Sep to nearly 30 at the time of writing, which is a clear sign of BTC outshining over gold.
However, this didn’t stop Jamie Dimon, the Chief executive officer of JP Morgan, calling BTC a “little bit of fool’s gold” in an interview with CNBC.
“I obviously don’t think that it is fool’s gold. I think it is a wonderful digital gold and has done a brilliant job of nailing that store of value narrative (..) I think we are still in a collectibles phase, but little by little it is establishing itself as one of the strongest monetary networks and absolutely a digital store of value,” opined Leah Wald, chief executive officer of Valkyrie Investments, in an interview on Bloomberg Quicktake.
As bears face a setback due to the quickly rising prices of BTC, it is only clear that BTC is now far more valuable than gold and performs significantly better as an investment vehicle.
About Bitcoin
Bitcoin (BTC) is the first cryptocurrency to come into existence based on the whitepaper by Satoshi Nakamoto, the presumed pseudonymous person or persons that drafted the document in 2008. To this day, it holds its place as the flagship crypto token of the crypto-verse and often dictates how other tokens in the crypto economy perform. BTC has a market capitalization of just over $1 trillion, with the market capitalization of the entire market standing at $2.29 trillion, according to data from CoinMarketCap.
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