In charting the steady appreciation of gold and Bitcoin, one user has determined that we may see the growth for both commodities intersect sometime in the coming decades.
Bitcoin has often been called ‘digital gold.’ It’s become a common phrase which is often used to illustrate how Bitcoin is a ‘store of value.’ It’s also a rare commodity, similar to gold. Yet, despite these comparisons, Bitcoin has seldom followed gold’s price movements. The only real exception was recently when, amidst an escalating trade war, investors seemed to flock to both Bitcoin and gold. Both are clearly being seen as a hedge against chaos.
In the past week or so, however, Bitcoin has once again decoupled from gold and has dropped substantially from its local high. Still, according to trader @davthewave, gold and BTC may someday appreciate at the same rate. A simple chart below makes his case as to when this might happen.
According to this chart, gold and Bitcoin should begin appreciating at the same rate around 2048. This would also imply that both have a similar market capitalization, of course. The situation is, understandably, a bit hard to believe. After all, the entire chart is ultimately based on both gold’s and Bitcoin’s USD valuation. Moreover, the chart does not include any inflationary pressure and that’s not to mention socio-political conditions which could just as easily impact price.Give it a few years, and gold and BTC might be appreciating at the same rate. pic.twitter.com/KEbO5vENkE
— dave the wave (@davthewave) August 16, 2019
Overall, the comparison is inviting as a consideration but ultimately is foolish to follow as if destiny. Bitcoin surely may reach gold’s market capitalization someday, but we also have to realize that Bitcoin is far more precious than gold will ever be. Therefore, although Bitcoin mimics some of the functionality of the metal, we need to realize it is a different animal altogether.
Do you believe that Bitcoin could, someday, mirror gold’s rate of appreciation? Is the comparison nonsensical? Let us know your thoughts in the comments below.
Buy and trade cryptocurrencies with a 100x multiplier on our partner exchange, StormGain.
Images are courtesy of Twitter, Shutterstock.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Advertorial
Advertorial is the universal author name for all the sponsored content provided by BeInCrypto partners. Therefore, these articles, created by third parties for promotional purposes, may not align with BeInCrypto views or opinion. Although we make efforts to verify the credibility of featured projects, these pieces are intended for advertising and should not be regarded as financial advice. Readers are encouraged to conduct independent research (DYOR) and exercise caution. Decisions based on...
Advertorial is the universal author name for all the sponsored content provided by BeInCrypto partners. Therefore, these articles, created by third parties for promotional purposes, may not align with BeInCrypto views or opinion. Although we make efforts to verify the credibility of featured projects, these pieces are intended for advertising and should not be regarded as financial advice. Readers are encouraged to conduct independent research (DYOR) and exercise caution. Decisions based on...
READ FULL BIO
Sponsored
Sponsored