Speculative asset due to the high volatility seen in bitcoin s price action the cryptocurrency is popular among traders particularly swing traders and day traders capitalizing on major inter day or intraday price movements. E commerce merchants often accept bitcoin as well as currencies like the us dollar and you can use bitcoin to invest in gold and silver. This is very important for trust and people s willingness to store value.
A more than 1 000 year history of being a decent store of value. Gold has something very important that bitcoin lacks. I humbly dedicate this chart to peterschiff in honour of his tireless promotion of bitcoin to his audience of gold bugs we are forever grateful.
This chart tracks gold vs bitcoin performance from a 1 investment on 6 oct 2009 when bitcoin first had a market price. Bitcoin has remained above the lows of that period. The last 3 weeks worth of rally is not all that dramatic when viewed on this time frame.
Bitcoin weekly price chart 4 4 20. On tuesday the bitcoin price hit its highest level in two months breaking past its resistance level of around 8 600 to settle above 8 800. Traditionally gold is a safe haven asset while bitcoin is a highly volatile and speculative asset.
It reached a high of 1557 on september 2 very close to the current price of 1497. Gold opened 2019 at 1282 84. Eventually it reached a high of 13 831 on june 26 before decreasing to the current price of 8000.
Bitcoin opened 2019 at 3797 94. An investment in gold during that same period would have seen an increase of 6 4 a huge disparity. Between may 2018 and january 2019 bitcoin saw its value drop by a massive 57.
Although the value bitcoin is higher than gold it s volatility is what should worry potential investors.
Gold price vs bitcoin. For bitcoin there is a 21 million bitcoin limit imposed into the mathematical algorithm and this number can t be increased. As for gold the yearly new supply is limited to around 2 500 tons as the world gold supply dwindles or becomes harder to reach using modern gold mining techniques. Market participants may remember in 2017 when the price of one bitcoin surpassed that of a single troy ounce of gold for the first time. 1 as of january 2020 bitcoin s price is above 8 700 but.
1 as of january 2020 bitcoin s price is above 8 700 but. Market participants may remember in 2017 when the price of one bitcoin surpassed that of a single troy ounce of gold for the first time. As for gold the yearly new supply is limited to around 2 500 tons as the world gold supply dwindles or becomes harder to reach using modern gold mining techniques.
For bitcoin there is a 21 million bitcoin limit imposed into the mathematical algorithm and this number can t be increased.
