Bitcoin is buying more gold than ever before. An ounce now costs less than 0.035 BTC

189
SHARES
1.5k
VIEWS
ADVERTISEMENT

Related articles


Bitcoin (BTC) is worth more gold today than ever before in its history as the largest cryptocurrency surpasses $ 50,000.

Data that market commentator Holger Zschaepitz noted on Wednesday confirms that an ounce of gold now only buys 0.0352 BTC.

XAU / BTC is exploring new depths

Since hitting new all-time highs on Wednesday, the price of gold has gotten even cheaper in Bitcoin terms: an ounce was priced at $ 1,794 or 0.0349 BTC at the time of writing.

“Bitcoin eats gold on a chart!” Zschaepitz explained in comments.

Gold price in bitcoin. Source: Holger Zschaepitz / Twitter / Bloomberg

In response, the Analytics account Ecoinometrics added that gold’s underperformance against Bitcoin simply increases when longer time periods are taken into account.

Bitcoin’s one-year risk-adjusted returns were over 270% as of December 28, 2020, compared to 24% for gold. The four-year returns show an even stronger contrast at 2.675%, compared to 64% for Bitcoin and gold.

“If you look at Bitcoin vs. Gold, don’t zoom out too much, otherwise gold will turn into the horizontal axis,” commented Ecoinometrics and presented the accompanying diagrams.

Comparing the risk-adjusted returns of Bitcoin and Gold. Source: Ecoinometrics / Twitter

Schiff holds out against a flood of Bitcoin profits

Despite the numbers, gold bugs continue to pit Bitcoin against the precious metal and predict catastrophic consequences for those who hold BTC, as the correlation between the two assets has decreased noticeably since September 2020.

Bitcoin rolling 90-day correlation with Gold, VIX, USD and S&P 500.Source: Digital Assets Data

Among them is Peter Schiff, who spat on his latest Twitter with proponents – including his son, Bitcoin hodler Spencer Schiff – that BTC / USD is destined to go to zero.

When asked if the Bitcoin Foundation founder Charlie Shrem’s process would take thousands of years or more, Schiff replied that it should be much sooner.

“Serious answer – I doubt it will take anywhere near that long,” he claimed.

“But there may still be a bid in #Bitcoin for years after it has dropped to near zero. So who knows how many more it will take for that bid to go away completely?”

A $ 1 million Bitcoin is “highly unlikely”.

Spencer subsequently reminded him of a prediction he made in June 2020 in which Schiff claimed that Bitcoin was “highly unlikely” to hit $ 50,000.