Gold starts breaking down against Bitcoin in the latest price rally as the number one cryptocurrency set a new all-time high against the US dollar. What is more important is the fact that the gold standard is crashing so let’s find out why in today’s BTC price news.
The gold versus BTC price charts show that each time support was broken, the precious metal dropped by 90% in value against BTC per ounce. This year can be remembered as the year that BTC matured and became a well-respected asset especially as it got major support from institutional investors. The number one cryptocurrency by market cap was positioned as the digital gold as it shared a lot of key attributes that gave the asset a safe-haven like property.
The precious metal underpinned the monetary system once until the gold standard was disbanded back in the 1970s. At that time, gold traded at $30 per ounce. Today, it trades at $1,800 per ounce which shows that it is a scarce asset and how it advanced in the past 50 years. It took many people like Paul Tudor Jones to start comparing BTC to Gold which is why some notable goldbugs started considering it as an alternative. Gold is more preferable in today’s decentralized world but Bitcoin proves to be more valuable. A recent example of tones of gold moving from a central bank that required extensive planning and armed guard transport as well as costing millions, outlined the need for Bitcoin.
One bitcoin transaction could be done in a matter of minutes and there’s no effort into moving it around. The BTC supply is finite, more so than the one of gold, and cannot be counterfeited. However, these are only a few reasons why the cryptocurrency is a better version of gold than the precious metal itself. The institutions and hedge funds that makeup to $10 trillion gold market cap are now waking up to this fact and are allocating money into BTC, especially because of the latest price rally.
At one time, an ounce of gold cost hundreds of BTC but in 2013, BTC reached price parity with an ounce of gold. Today, one gold bar is worth 0.1 BTC and after every breakdown of support, the cryptocurrency gains 90% against the money standard.
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Stefan has been writing articles for DCForecasts since 2016 in-house full time. As one of our main cryptocurrency writers, he focuses on covering the latest cryptocurrency news, technical charts, price analyses of coins and press releases. When he is not exploring and covering the latest topics in crypto, you can find Stefan playing basketball, tennis or cycling.
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