Both gold and Bitcoin are the preferred stores for value. Even though BTC has been reaching their record high every week, on the other hand, the price of gold is constantly declining.
Many people are already referring to Bitcoin as the ‘digital gold’ due to the reason that actual gold is losing its value gradually. However, the question is can BTC beat gold and emerge as the leading store value for people.
Bitcoin Vs Gold
The ratio of gold-BTC at present is the lowest ever. This means that the price of gold in relation to Bitcoin is at the lowest point ever since the creation of BTC. This is mainly due to the reason that BTC is currently on a bull run and has been for the past few weeks.
At this moment, one BTC can be bought with the gold of about 29.63 ounces. The previous time when BTC was having a bull run during 2017 December, it took 14 ounces of gold to buy one single BTC.
Value storage is sort of a measure that is quite independent of the decrease in value of the commodity. For instance, the value of cars starts depreciating immediately as it is driven off from the facility and considered bad value storage.
On the other hand, gold is a precious metal that does not decay and is the ideal value storage. Investors are in search of metals, currencies, or other kinds of assets for the purpose of value storage during inflation or when the market plummets.
Bitcoin is making far better returns as compared to fiat currencies which depreciate annually. In 2021, BTC value increased by a massive 80% and currently trading at $52,240. Meanwhile gold is between the range of $1,586 and $1,776.
