It never took so much gold to buy bitcoin – this old-fashioned millionaire annoyed at BTC atomizing his toy
Bitcoin is worth more than its weight in gold – Safe havens are popular right now in the face of inflation risks hanging over fiat currencies more than ever. Although it is the “new kid” in the store of value category, Bitcoin is proving to be the most attractive of all today.
17.5 ounces of gold for a single bitcoin
The year 2020 will have been trying for all working people on the planet, with an anxiety-provoking news dominated by the health crisis (then the economic crisis) of the Coronavirus .
2 assets however fared well and experienced new all-time highs (ATH) in their valuation this year: gold and Bitcoin .
However, if gold was the quickest to rebound after the crisis – exceeding $ 2,000 an ounce (31.1 g) – as of last summer, it is indeed the king of cryptos who ended the year in a bullish fireworks display .
As Bitcoin.com reports , it has never taken so much gold to buy a bitcoin. Indeed, on the day of January 3, 2021, while an ounce of gold was trading at nearly $ 1,945 per ounce, the price of BTC reached a new ATH above $ 34,000. .
At this point in time, therefore, it took approximately 17.5 ounces of the precious metal to obtain a single copy of the digital asset.
Bitcoin’s „insolence“ towards gold which infuriates some
With his many admonitions to the king of cryptos, we hardly need to introduce Peter Schiff . This old-school millionaire and investor is as much a fan of gold as he is an opponent of Bitcoin .
In one of his last tweets, he could not help criticizing, once again, the invention of Satoshi Nakamoto:
“The only valid reason to buy bitcoin is to think that the bubble is going to get a lot bigger before it bursts. Most bitcoin buyers don’t even know it is a bubble and therefore will never sell. And for those who know, they will be unable to see when it [the bubble] will burst. It is therefore also unlikely that they will come out with any benefit. “
To try to understand our favorite gold metal fanatic, you have to listen to his main point. For him, gold is the only store of value because people who buy the precious metal now “will be able to sell it in the future” to buyers who “really need” to use gold as the metal.
Conversely, for the millionaire, Bitcoin would be just a game of pure speculation , where investors simply hope that they can resell their BTCs at a higher price to people who, in turn, hope for the same thing later.
In the end, this bickering does not take into account the most essential element. Indeed, whether one chooses Bitcoin or gold, the goal is above all to protect against the risk of collapse of fiat currencies by hyperinflation. To counter this, digital asset and precious metal seem like smart choices, but one horse might just be faster than the other.