The gold market capitalization is up by $250B in just the past 24 hours. For comparison, that’s more than the entire market capitalization of Bitcoin (BTC).
If you want a reminder of small Bitcoin still is, look no further than gold’s market movements.
The precious metal is up just 1.89 percent in the past 24 hours but has added a staggering $250B to its market capitalization just by this move alone. Gold is up 5.47 percent in the past 30 days.
This should ultimately be a reminder of how small Bitcoin is compared to gold. The precious metal is often compared to the leading cryptocurrency, with Bitcoin hoping to someday be a proper ‘store of value’ for investors. However, the cryptocurrency still has much to grow if it wants to capture even a fourth of gold’s dominance.
Gold’s market capitalization is some $7.5 trillion.
Gold Marketcap up $250Billion in the past 24 hours.
More than the entire Marketcap of Bitcoin
— Rhett Creighton (@Rhett_Creighton) August 26, 2019
There are some indicators that Bitcoin is proving itself to be a better macro indicator than gold. With gold being so large and more sluggish in its price movements, Bitcoin has demonstrated it is more responsive to geopolitical events. Recently, the cryptocurrency proved to be more reactive during Trump’s trade war escalation than gold.
Although gold has proven itself to be a stable store of value, critics argue that it still is not ‘in tune’ with our still-new digital economy. Bitcoin, being born out of the internet, is an intuitive substitute. Once the cryptocurrency can more definitely serve as an indicator for macro events, it will cease to be a speculative ‘store of value’ and become a commodity which will lead the market.
If Bitcoin continues on its current parabolic trajectory and tapers off around gold’s market capitalization, we could see the precious metal and the leading cryptocurrency appreciate at the same rate around 2048. This, however, remains just speculation — since the prediction has to assume all other variables are completely non-existent.
Do you believe that Bitcoin could someday usurp gold? Let us know your thoughts below in the comments.