Bitcoin Beats Gold As A Store Of Value After Hitting $52K

Bitcoin beats gold as a store of value right after it hit the $52,000 level for the first time ever, marking another ATH as of late so let’s read more in our latest BTC news today.

Bitcoin’s price is at an all-time high and gold was not able to keep up the pace. Gold’s value compared to BTC is at an all-time low. The gold to BTC ratio is at an all-time low which means that the price relative to the cryptocurrency is at its lowest point since BTC was created. That’s mostly due to the ongoing bull run for BTC as it now took 29.63 ounces of gold to buy one single BTC while back in December 2017, the number was 14 ounces.

Looks as if #Bitcoin is eating #Gold. While the cryptocurrency hit fresh ATH >51k, Gold has dropped <$1800. pic.twitter.com/sCorEFrV2f

— Holger Zschaepitz (@Schuldensuehner) February 17, 2021

A store of value is something that has to be held on to without depreciating in value so cars, for example, do depreciate as soon as you buy them and they are a bad store of value. Gold is a precious metal that doesn’t decay and represents a classic store of value. The investors are looking for currencies, metals or other assets that will serve the purpose of a store of value at times when inflation is higher than other markets or they are getting crashed. The dollars are subject to inflation but they can be a spectacular store of value in the short-term.

BTC is creating better returns than the fiat currency that promises to drop a little each year. As per the data from Nomics, BTC increased by 80% since the start of the year and it even quadrupled in price to a current market price of $51,994 at an all-time high. At the same time, the price of gold is up by 12% to a $1776 level.  As Bitcoin beats gold, Mati Greenspan who is the CEO of Quantum Economics said:

 “Though both assets have their unique advantages and disadvantages, at this time it’s clear that the market is far more willing to hedge the upcoming period of inflation with bitcoin over gold.”

Given both asset’s historic volatility, the gold-to-BTC ratio can make a sudden move back up. It doesn’t take a lot to see that 1 BTC could purchase only 3.04 oz of gold on March 12, 2020, when the world entered into pandemic mode.