Recent data show that as bitcoin prices have risen and gold prices have fallen, the value of the precious metal has plummeted against digital gold. Despite the critical performance of gold in recent years, some still believe that bitcoin can never compete with gold.
to the Report Bitcoin telegraphers continue to ridicule gold, as the 10-year yield of the precious metal has recently been negative.
New data shows that gold traded 3.7 percent below its price in the same period in 2011 as of Tuesday.
Gold traders have had a bad week. Monday’s sharp fall hurt investors in the precious metal, much of it in 2021.
Gold started the year at $ 1,941 and traded at $ 1,729 an ounce at the time of writing, indicating a 10.9 percent drop in gold since the beginning of the year.
Previously, the long-term performance of gold made investing in this precious metal not look so bad, but from the beginning of this month, even the 10-year storage of gold will be another dubious investment. On August 1, 2011, gold traded at $ 1,830, up 5.8 percent from its current price.
During this period, Bitcoin has outperformed not only gold but also any other economic commodity in terms of dollar profits, and so far there has been no sign of a reversal in the Bitcoin market that could be seen as a competitive advantage for gold. Considered.
The FTX exchange briefly said last week:
One bitcoin is currently worth 21 ounces of gold.
Gold has weakened against bitcoin since Tuesday and its value per ounce has reached 0.038 bitcoin. In other words, one bitcoin is now equivalent to 600 grams of gold. If the price of Bitcoin returns to its historical peak in mid-April, ie $ 64,500, the value of gold against Bitcoin will reach 0.02746 units, which is the lowest price compared to Bitcoin.
It may come as no surprise that gold industry activists are among the few who publicly support this precious metal. Peter Schiff, CEO of Schiff Gold, is one of them.
Despite the critical performance of gold on the macro market, Peter Schiff, who opposes bitcoin, believed that despite all the success, this digital currency could never compete with gold.
“Supporting gold,” Schiff said this week.
An increase in the price of bitcoin while a decrease in the price of gold does not mean that bitcoin has replaced gold as an anti-inflation asset. Gold is falling as traders mistakenly think the Federal Reserve can fight inflation by cutting back on quantitative easing and raising bank interest rates. Bitcoin is not traded like gold, because it is not digital gold!
Of course, Peter Schiff’s view is contrary to the views of many investors operating in areas other than digital currency. Among them are Ray Dalio, a prominent investor, and Jerome Powell, the head of the Federal Reserve. However, Ray Dalio has recently said that he still prefers gold to bitcoin.