Bitcoin is worth more than its weight in gold – Safe havens are in demand at this time as inflationary risks weigh more heavily on fiat currencies than ever before.
Although Bitcoin is the „new kid on the block“ in the safe haven category, it is currently the most attractive of all.
17.5 ounces of gold for a single Bitcoin
The year 2020 will have been a trying year for all the world’s working people, with anxiety-provoking news dominated by the health crisis (and then the economic crisis) caused by the Coronavirus.
However, two assets have performed well and have reached new all-time highs (ATH) in their valuation this year: gold and Bitcoin.
However, if gold was the quickest to bounce back after the crisis – exceeding $2,000 per ounce (31.1 g) – as early as last summer, it was indeed the king of cryptos that ended the year in a bullish firework display.
As Bitcoin.com points out, it has never taken so much gold to buy one Bitcoin. In fact, on January 3, 2021, when an ounce of gold was trading at nearly $1,945 per ounce, the price of BTC reached a new ATH above $34,000.
At that point, it took approximately 17.5 ounces of the precious metal to obtain a single copy of the digital asset.
Bitcoin’s „insolence“ towards gold that makes some people angry.
With his numerous admonitions to the king of cryptos, there is almost no need to introduce Peter Schiff. This millionaire and investor of the old school is as much a fan of gold as he is an opponent of Bitcoin.
In one of his latest tweets, he can’t help but once again criticize Satoshi Nakamoto’s invention:
„The only good reason to buy Bitcoin is to think that the bubble will get much bigger before it bursts. Most Bitcoin buyers don’t even know that it is a bubble and therefore will never sell. And for those who do, they won’t be able to see when it [the bubble] will burst. So they are also unlikely to come out of it with any profit. »
To try to understand our favorite gold metal fanatic, you have to listen to his main argument. For him, gold is the only store of value because people who buy the precious metal now „will be able to sell it in the future“ to buyers who „really need“ to use gold as a metal.
Conversely, for the millionaire, Bitcoin would be a game of pure speculation, where investors simply hope to be able to resell their CTS at a higher price to people who will, in turn, hope for the same thing later.
In the end, this bickering does not take into account the most essential element. Indeed, whether one chooses Bitcoin or gold, the goal is above all to protect oneself from the risk of a collapse of the fiduciary currencies by hyperinflation. To counter this, digital assets and precious metal seem like wise choices, but one may just be faster than the other.