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Gold At an All-Time Low Against Bitcoin As BTC Price Tops $51K

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Gold is at its lowest point when weighed in against Bitcoin. The cryptocurrency, on the other hand, shows no signs of slowing down.

Bitcoin’s price continues to increase as the cryptocurrency expands above the $50,000 mark. At the same time, the precious metal that it’s most commonly compared to, gold, sits at an all-time low when valued against BTC.

Gold Suffers Against Bitcoin

Bitcoin is compared to many things, but most commonly, it’s pinned against gold as both assets make a strong case as a store of value.

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However, over the past year, there’s a clear winner among the two, as the Gold/Bitcoin ratio currently sits at an all-time low.

gold/btc
Gold/Bitcoin Ratio. Source: Bloomberg

As seen in the above chart, the ratio has been decreasing gradually ever since March last year. Back then, the US value of Bitcoin dropped to a yearly low of around $3,800 in a market-wide crash largely induced by the looming crisis with the COVID-19 coronavirus.

It has been up only for BTC since then, as the cryptocurrency charts a staggering increase of about 1250% since the lows in March 2020. Gold, on the other hand, has been slacking behind. At the time of this writing, an ounce of gold costs around $1780 as the precious metal seems to be unable to break above the coveted (for that market) $2,000 mark, let alone chase any gains provided by Bitcoin.

Digital Gold Narrative Growing Stronger

While both assets display strong properties of being a store of value, Bitcoin, in the eyes of many, has the upper hand. Of course, it’s worth noting that this is to be time-tested because the digital currency is particularly young compared to its physical counterpart.

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However, a growing number of institutions and prominent investors are adopting the narrative that Bitcoin is, indeed, somewhat of digital gold, though, in fact, it’s much more than that.

Last year, legendary investor Paul Tudor Jones said that Bitcoin is the best inflation trade. Just yesterday, the president of the Federal Reserve Bank of St. Louis said that Bitcoin is more of a rival to gold rather than being a currency.

With all of the above, it’s worth outlining some of the main differences between both, which favorably skew the scales towards bitcoin. For one, it’s easy to transport – you can access your bitcoins from literally any point of the world as long as you have access to the internet. Imagine transporting 10 KG of gold. Now imagine transporting a ton of gold.

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Bitcoin is also comparatively easier to safekeep. You don’t need highly secured vaults or safe boxes. Your bitcoins are safely stored in your wallet, and as long as your private keys are yours and not compromised, you have nothing to worry about.

Bitcoin is digital, it’s censorship-resistant, and it’s also verifiably scarce. All of these are likely to benefit the cryptocurrency in a world that’s moving towards digitalization quicker than we can imagine.

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Bitcoin Drops as China Declares Crypto-Businesses Illegal

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  • China declared that cryptocurrency-related businesses are illegal
  • Bitcoin, Ether, and stablecoin Tether do not qualify as legal tender in China
  • BTC drops in price as the announcement went out

Once again, China reiterated its antagonistic stance on Bitcoin and the cryptocurrency industry as a whole.

In an announcement, the People’s Bank of China (PBOC) mentioned that BTC, ETH, and USDT are not legal tenders in China. They added that these cannot be used in the currency market.

Additionally, the central bank deemed all crypto-related businesses as illegal. This includes overseas exchanges serving residents within China and derivative transactions.

Following the news, Bitcoin’s price fell by almost $2,000 as the news circulated. This has been a common pattern whenever China FUD comes out.

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Earlier, China also reiterated its stance on crypto trading and mining while testing the Digital Yuan. According to the PBOC, it will continue releasing regulatory pressure over the crypto trading industry.

Despite the negative news, many analysts remain bullish on Bitcoin and the cryptocurrency industry as a whole. According to analyst Lark Davis, this is not new and will happen again in the future.

In a tweet, Davis mentioned that “The year is 2025, #bitcoin has just corrected from 400k to 250k on China banning BTC fears.”

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Can Bitcoin Surpass $6,000,000? Ethereum and Polkadot Creator Details Possible Future of Crypto

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Early Bitcoin developer and co-founder of Ethereum and Polkadot, Gavin Andresen, is outlining a future where BTC rises to a staggering $6,000,000 per coin.

Gavin Andresen, who took over as Bitcoin’s lead maintainer from founder Satoshi Nakamoto in 2011, just published a new blog post detailing how BTC’s theoretical evolution could look.

Andresen describes a “possible” scenario where Bitcoin hits a price tag of $6,000,000 by 2061, transaction fees 326x higher than they are now, and the blockchain is used chiefly by whales.

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“Imagine: it is the year 2061. The BTC price is six million US dollars – equal to about a million 2021 dollars because of inflation.

Miners are being rewarded 0.006103515625 BTC per block, plus transaction fees of about 5 BTC for 4,000 or so transactions ($7,500 per transaction).

But most BTC transactions don’t happen on the BTC network. Most BTC is locked up in multi-signature outputs secured using multiparty computation and mirrored on another chain as ‘wrapped’ tokens.”

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In his scifi scenario, Andresen says those who do remain on Bitcoin’s network will be incentivized to keep it alive.

“The transactions that do occur on the main BTC network are high-value, mostly between super-whale-size holders…

These whales maintain the BTC network forever. They are the miners and the transaction creators; they don’t care how high transaction fees go, because they receive as many fees as they pay.”

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However, Andresen says that by 2100, even those users would likely leave the blockchain.

“In the year 2100 the whales notice that the mining reward is basically zero… Eventually, there are zero new BTC being produced on the BTC network, and zero BTC circulating on the BTC network. There is nothing left to secure, and the chain stops.”

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Top Analyst Maps Bitcoin and Cardano Price Trajectories, Warns Best Entry Point for ADA May Be Gone

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Top Analyst Maps Bitcoin and Cardano Price Trajectories, Warns Best Entry Point for ADA May Be Gone

Crypto trader Michaël van de Poppe is looking at what’s ahead for Bitcoin (BTC) and the smart contract platform Cardano (ADA).

The analyst tells his 420,000 Twitter followers that the best entry point for Cardano may be gone after the asset bounced off a key support level at $1.86.

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“If you want to get into Cardano, this was the region where you would want to get into it, and the higher low that might be created.

So based on the daily timeframe, the best entry might be gone, but you’re still getting a better entry than the ones who have been buying around $2.80.”

Van de Poppe is now looking to see if ADA can turn resistance at the $2.37 level into support.

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If the markets correct further, he is keeping an eye on the $2.15 level as a potential buy zone.

“When you’re looking at the four-hour time frame, I think you’re getting the exact same view as what you have right now on Bitcoin and [Ethereum], actually. So you’re going to look for an entry point which is around the fact of $2.15, so anything in this region might be a good entry point if we get a corrective move.”

Looking at the Bitcoin pair, van de Poppe thinks that ADA will most likely consolidate briefly after retesting support at its previous all-time high.

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“We can see that we’ve had a beautiful retest of the previous high here too, and therefore some consolidation is most likely going to take place before we’re going to have new impulse waves.

So both the USDT and BTC pair are looking for continuation, and I think that’s just great, and I think that’s just what we want to see with the markets right now.”

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