Charts comparison shows that 2020 was the year of the digital gold narrative especially since the pandemic started and the start of money printing. In 2021, only BTC matters, and comparing it to gold at this point and it is selling the coin short so let’s read more in our latest BTC news.
the age of cryptocurrency started and the charts comparison shows it. Bitcoin was designed by Satoshi Nakamoto as the first form of peer-to-peer digital “Cash” but sought to give the cryptocurrency a few features of a commodity like rarity which was achieved through the 21 million BTC hard cap of the cryptocurrency. The cryptocurrency’s creator comments showed that the distinct fascination with gold seems to have been trying to create a digital representation of the hard money standard.
The term gold standard is usually used to describe the time once all fiat currencies were pegged to the precious metal and it was a time that was more prosperous and wealth gaps were not as wide. The evolution of the dollar and fiat money did away with the gold standard a few years ago. The price per ounce of gold skyrocketed from $30 to $2000 over the past year. During the gold bull market peak, the precious metal topped in August and coincided with the moment hedge funds and the public companies started purchasing BTC.
From that moment on, Bitcoin was in the most powerful uptrend and spiked from $10,000 to $50,000 with not even a trillion in capital to show it. Gold outflows started rising at the same time when the BTC trading volume started climbing to previous highs. If the $10 trillion gold market cap is reached, the price per coin could even reach $500,000 apiece. The charts show exactly when the deviation took place and the gold started a new downtrend. Prior to that, both of the assets performed well as a safe haven after the pandemic but digital currency took over since.
The digital gold narrative was quite effective and now BTC is ready to shoot to a new high n replacing the dying dollar. BTC was following the gold fractal for years which has benefited the cryptocurrency well.
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