Despite its own record run, gold is losing ground to Bitcoin and has dropped to a year-long low in comparison.
Bitcoin ( BTC ) has risen to a price of 7 ounces of gold for the first time in more than a year after the precious metal began to plummet again.
As data from CoinGecko for BTC / XAU, i.e. the currency pair consisting of Bitcoin and gold, show, the important 7 ounce mark was reached again for the first time on October 25. At the time of going to press, the Bitcoin price, measured in gold, could even advance to 7.02 ounces.
Gold is losing to BTC
Although Bitcoin is currently on the downside again after the $ 14,000 mark was scratched, things continue to look good for the market-leading crypto currency compared to the precious metal, as the latter has lost again due to the returning uncertainty of the corona crisis .
The last time the sound barrier of 7 ounces was broken was in September 2019.
Crypto-analyst PlanB , who is known for using the popular stock-to-flow forecast model on Bitcoin, emphasizes the importance of this development and calls it „significant“.
„It looks like #Bitcoin is getting ready to cut a bigger slice of the market capitalization pie of gold,“ crypto expert Ecoinometrics replied. So he then formulates a downright challenge to the crypto currency:
“Right now #BTC is only 2.4% of the market capitalization of gold. So this is just the beginning. “
The assessments of the two experts coincide with the latest thesis by Real Vision CEO Raoul Pal , who is convinced that gold is losing more and more to Bitcoin . So he writes:
“As expected, gold is losing to Bitcoin. Next, I expect Bitcoin to be able to outperform the US dollar and the stock market as well … let’s wait and see. #Bitcoin “
Ship renews criticism
Gold advocate and Bitcoin critic Peter Schiff sees the soaring of the cryptocurrency meanwhile as an occasion to strike against it again. Although the previous record high of 20,000 US dollars is still a long way off, Schiff once again describes Bitcoin as a „speculative bubble“.
„If you compare the size of a speculative bubble with the confidence of investors in their investment, #Bitcoin is the largest speculative bubble I’ve ever seen,“ he wrote accordingly on Twitter . And further:
„Bitcoin investors are more convinced that they are right and cannot lose than investors in the dot-com bubble or before the financial crisis.“