The value of one bitcoin was equal to one kilogram of gold. In fact, yesterday it even surpassed it.
Yesterday, one gram of gold was worth $57, just as Bitcoin was worth $57,000.
Today, however, Bitcoin is retracing like the whole market and is now at around $53,000.
But the growth in recent days has also increased Bitcoin’s capitalization, which is now worth 1 trillion, a tenth of that of gold, which is worth 10 billion.
These numbers are enough to explain why Bitcoin is becoming increasingly accredited as a store of value.
Bitcoin vs gold: the word from the experts
Business Insider interviewed 10 experts and asked their opinions on the comparison between Bitcoin and gold.
On the side of gold supporters, there’s the opinion of David Rosenberg of Rosenberg Research, formerly of Merrill Lynch:
“My vote would be for gold because it has thousands of years of a historical record as a store of value, has one-fifth the volatility of bitcoin, and doesn’t face the same competition risk. The day that Queen Elizabeth trades in the five pounds of gold in her crown for crypto is the day I’ll shift course”.
Gold’s history vs Bitcoin’s volatility push most investors to choose the former. But not everyone thinks so. In fact, Anthony Pompliano, from Pomp Investment and Morgan Creek Digital Assets, takes the opposite view:
“Bitcoin is a 100x improvement over gold as a store of value. The world is realizing this and beginning to reprice digital currency in real-time. Although bitcoin has increased hundreds of percent in the last few months, it is likely to continue appreciating in US dollar terms over the coming years. I suspect that bitcoin’s market cap will surpass gold’s market cap by 2030. For this reason, I own no gold and have a material percent of my net worth invested in bitcoin”.
Then there is the middle ground, represented by Peter Cardillo, of Spartan Capital Securities LLC:
“Sooner or later, people are going to realise that the move in Bitcoin is more of a speculative move than of any real fundamental reason. There will be a place for Bitcoins, but I do not believe it is going to replace gold or paper currencies”.