Bitcoin Vs Gold – Battle for Best Safe Haven Asset Intensifies
Bitcoin (BTC) hit a new peak against gold yesterday, signaling the unabated rise in demand for crypto assets. While soaring above 29,000 against the greenback Friday, Bitcoin also hit a new high of 15.40 gold ounces against the precious metal, eclipsing the earlier high recorded in December 2017, as per data provided by MarketWatch.
As per U.Today, the Bitcoin-gold rate hit a high of 16.62 ounces on Friday morning. 2020 was a memorable year for Bitcoin advocates as adoption by institutions assisted in fueling a bull market incongruous from what was seen in the last 11+ years. The market cap of Bitcoin increased almost 300% this year.
Gold also recorded notable gains in 2020, even though they are quite small in comparison to exponential rise of Bitcoin. In the spot market, Gold ended with a y-o-y gain of 25%.
The main advocates of Bitcoin trust that the crypto is aggressively taking away gold’s market capitalization as investors seek easy transfer and better capability. Strikingly, the opinion is also echoed by JPMorgan Chase strategists, who trust that the argument calling Bitcoin as digital gold is luring capital out of yellow metal.
Some trust that further supply squeeze could keep Bitcoin’s price soaring higher next year. Notably, digital asset manager Grayscale purchased roughly 3x the quantum of Bitcoin mined in December. Purchases made via PayPal and Cash App platforms, among others, have also paved way for a shortage in supply of Bitcoin.