There have been several comparisons between Bitcoin (BTC) and Gold. In fact, some experts have called Bitcoin ‘digital’ or ‘new’ gold. Here’s an interesting fact about these assets: they have had an almost identical price performance.
Bitcoin and Gold More Similar than Expected
Bitcoin has less than ten years in the market, but it already has some incredible similarities with gold in terms of performance.
The Twitter user Nunya Bizniz published an image in which it is possible to see Bitcoin’s price between 2013 and 2018 and Gold’s price from 1976 until today. The similarities are completely shocking.
The twitter user said that both charts had an ‘uncanny’ resemblance using a log scale. Clearly, the gold chart has a longer time frame, but the results are surprisingly similar.
Some time ago, the famous US economist Paul Krugman, said that Bitcoin has more utility than gold. Indeed, he explained that gold is dead and that Bitcoin has more utility than gold.
‘There is some chance for Bitcoin to be valuable in the future,” he stated.
“Taking bitcoin in isolation… we believe bitcoin disrupts gold. We think it’s a better gold if you look at the properties of money. And what makes gold gold? Scarcity. Bitcoin is actually fixed in supply so it’s better than scarce… it’s more portable, its fungible, it’s more durable. It sort of equals a better gold across the board.”
There are several benefits related to Bitcoin that gold cannot offer. For example, Bitcoin is portable, but gold cannot be transported in such an easy way.
At the beginning of the last year, Bitcoin surpassed gold’s price for the first time. Back in March 2017, the price of the famous virtual currency was $1,268 and a troy ounce of gold was worth $1,233 dollars.
Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.