Bitcoin is making headlines in the media everywhere left and right, but no more than CNBC. According to a respected journalist, it was said during a segment on CNBC that gold without Bitcoin would trade at $ 3,000 an ounce.
Here’s why that statement is likely to be true, and why cryptocurrency will continue to steal market share from aging, shiny rock.
Without BTC, gold would trade at $ 3,000
The digital narrative has worked like a charm, and Bitcoin is now stealing any capital that wants to park in an inflation-resistant location.
Gold has traditionally served this purpose, and when the economy first stood on thin ice, ancient fortunes that were once the “standard” began to improve again.
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Gold eventually hit more than $ 2,000 an ounce at the height of its bull market. Natural profit-taking caused the price per ounce to decline, but instead of climbing another leg higher, the capital well suited for gold ended up in Bitcoin instead.
Because bitcoin exists and money is flowing into the scarce cryptocurrency instead of gold, it has prevented gold trading from trading at $ 3,000 an ounce, according to a statement overheard on CNBC today.
Statement on @CNBC Today: If there wasn’t a #bitcoin, #gold would be trading at $ 3,000 today.
– Daniela Cambone-Taub (@DanielaCambone), February 19, 2021
The statement was shared in a tweet blaming Bitcoin as the culprit for the lack of gold prices.
How Bitcoin makes metals seem much less precious
Fortunately, charts don’t lie, and comparing gold to Bitcoin definitely shows a correlation between the peak of gold and the actual upswing in the cryptocurrency.
The change came just days after the gold summit, and publicly traded companies began buying BTC in an effort to top up company reserves.
That trend has now spread to Tesla, and it is expected that other companies will follow suit and be responsible for the price increase of Bitcoin.
However, other reasons are undeniably due to gold outflows from hedge funds and other investors. Even retail is now making a return to cryptography but is more focused on altcoins as the price per BTC becomes out of reach for the average person.
Related reading | The chart comparison shows the effectiveness of Bitcoin Digital Gold Narrative
But even altcoins, which absorb some of the capital that could have ended up in gold, ultimately do so with Bitcoin. Because of the first cryptocurrency, the rest of the market exists and, according to CNBC, is responsible for trading gold below $ 2,000, let alone the $ 3,000 that would otherwise exist.
Featured image from Deposit Photos, Charts from TradingView.com