Bitcoin is often referred to as digital gold because it has many similarities with real gold as a store of value due to its 21 million limit on paper. In reality, BTC has not yet turned out to be too good a store of value due to its high volatility. However, many experts believe that this will decrease with increasing market capitalization in the coming years and decades. But what is actually the price development between the two assets? The answer to this question should provide positive Bitcoin News among Crypto fans.
Bitcoin News: BTC better than Gold?
A comparison of 1 ounce of gold and 1 BTC over the last 9 years shows what massive growth Bitcoin has achieved in recent years. One could say that Bitcoin has clearly outperformed gold in recent years. Bitcoin News is particularly pleased that 2019 is the best year for BTC compared to gold.
Here are the figures:
- 2011: 584 BTC = 1 ounce gold
- 2012: 159 BTC = 1 ounce
- 2013: 6 BTC = 1 U.
- 2014: 3.5 BTC = 1 U.
- 2015: 2.5 BTC = 1 U.
- 2016: 1.6 BTC = 1 U.
- 2017: 0.18 BTC = 1 U.
- 2018: 0.16 BTC = 1 U.
- 2019: 0.15 BTC = 1 U.
The figures are based on the average prices of the two assets in the respective years. The figures clearly show that each year on average you could buy 1 ounce of gold for less and less Bitcoin. And this in spite of the meanwhile strong price collapses of BTC. The year 2019 is not over yet, but the picture of the next years seems to continue, with Bitcoin reaching a new All-Time-High (ATH) compared to gold so far this year.
Bitcoin still far behind Gold
As pleasing as these statistics are for every Bitcoin fan, they must be considered realistically as a whole. The current market capitalisation of BTC is about 165 billion US dollars, whereas that of gold is estimated at about 9 trillion US dollars. Despite the meteoric rise, BTC is far from being on a par with gold when it comes to the Store of Value function.
In general, the comparison of BTC and gold is not far-fetched. Analyses repeatedly show that there is a relatively strong correlation between the two markets. The fact that we will have to adjust to an economic crisis in the next 1 to 2 years makes this insight particularly interesting.
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