Bitcoin and Gold who will Rule in Future
Gold is estimated to have a 10 trillion USD market capitalization. That is an absolutely amount of money for a special kind of rock we find beneath the ground. Certainly, we can use it to make jewelry, it is certainly quite resistant but there isn’t anybody in the financial world who will try to defend that gold’s value is due to its real-world uses.
Gold has a far greater tenure than bitcoin, as it was first used more than 2,000 years ago. Bitcoin, on the other hand, has been in existence since the first block was mined in January 2009. Another key difference between the two is that while gold is a commodity, classifying bitcoin has proven a bit more elusive.
It now takes 72 tolas of gold to buy a single Bitcoin. It’s worth mentioning that at the height of the previous BTC bull run in 2017, that number was 34 tolas.
Bitcoin is threatening this position though. Since its inception, it has vastly outperformed gold going from less than a cent to its current status, hovering over $30k. There is an argument to be made that Bitcoin is very much a competitor to the gold market, easily exchangeable, an excellent narrative of decentralization that appeals to millennials and robust security with cheap transactions.
According to Decrypt, the BTC has increased in value by a mammoth 80% since the beginning of the year. It’s quadrupled in price—up 419%—since February 2020 to its current market price of $52,240, which is an all-time high.
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