According to Clem Chambers of the Forbes Investor Team, bitcoin is the new gold.
Chambers is the managing director of the ADVFN website dedicated to private investors, author of several books related to investments and collaborator of Forbes. Moreover, in November 2018, he won Journalist of the Year in the Business Market Commentary category in the State Street UK Institutional Press Awards.
In this article, Chambers states that the crypto winter is over and that there is now a clear path upwards.
Moreover, Forbes makes a comparison with gold, explaining that the price of bitcoin is the result of supply and demand and that more than $3.3 billion must flow into bitcoin to raise the price. And while this figure may seem high, it is not really the case when compared to the size of modern financial markets.
For example, gold production is about $140 billion a year, so this is the amount of fiat money that must enter the market to keep its price at around $1,300 an ounce.
In fact, both assets (gold and bitcoin) have approximately the same emission in percentage, and the difference lies in the fact that the market capitalisation of gold is about 5 trillion dollars, while that of bitcoin stands at 0.09 trillion.
Gold is the global asset for risk protection, making investors incredibly interested in it: it is a dominant commodity that belittles stocks or other investment assets in the minds of the common man.
According to Chambers, bitcoin and cryptocurrencies will increasingly share risk capital with gold, although that trend is not yet clearly visible.
In addition, Forbes points out that if bitcoin were to take even just 20% of that market, its price would exceed the previous peak of $20,000 at the end of 2017, regardless of whether it is used as a means of payment or for any other use case.
When asked about how high the price of bitcoin can still go within the year, Forbes explains that $6,000 is an easy target, but also $10,000 is not a very difficult target.