Nov 11, · Should bitcoin cash flip the market cap of gold given current data, the resultant price is a shimmering $, per coin. None of this is to factor in . Aug 17, · Bitcoin vs. gold On a purely monetary level, bitcoin is valued at three times the price of an ounce of gold, which closed near $1, an ounce this . Aug 04, · Market Cap: $ billion (Bitcoin) vs $ trillion (Gold) Given the respective prices of both Bitcoin and gold, the total market cap of circulating supply for each asset comes in at $ billion for Bitcoin and $ trillion for gold. That makes Bitcoin over 60 times smaller than gold—or % of gold’s current market cap.
Gold market cap vs bitcoinBitcoin vs Gold: 5 ways to compare two of Earth's scarcest assets | Cryptowatch Blog
It is best to analyze their markets using classical comparative-static Monetary Economics. The Supply of Bitcoin is perfectly inelastic vertical Supply curve. Supply increases by The Demand for Bitcoin is a Demand for Money. Where Google Finance prices are unavailable, prices are taken from Bloomberg. Not pic. Bitcoin versus Precious Metals. That is half a million dollars for Europeans confused by the comma sign.
This is an old but a good tidbit on this subject:. TheStalwart barrysilbert pic. Bitcoin now has a larger market capitalization than silver, twitter and Dropbox — Thanks for the data bravenewcoin pic. It was pointed out to Dixon that he was selling snake oil. He did not correct the false information he distributed, which is a worrying trait.
BambouClub SimonDixonTwitt bravenewcoin 2. Last word on Bitcoin and Gold. Bobby Lee makes some interesting observations about the mining of Bitcoin and Gold in China.
How do you measure the market cap of a currency? What Europeans call current accounts. It excludes less liquid, broad money, notably money held in time-deposits savings accounts. Bitcoin Money Supply was 41 in global rank on 1 Jan Now USD M1 changes over time. Usually, it grows — much more quickly than the supply of Bitcoin measured in BTC — and, very rarely, decreases. The MS for Bitcoin presently is It will rise to a maximum of 21 million.
You know the story, the best-performing currency in , , , , A Reserve Currency is a one that is held in significant quantities by governments and institutions as part of their foreign exchange reserves.
Reserve Currencies are normally considered to be hard or safe-haven currencies. Source: IMF. MS of Bitcoins vs. Plus Gold, CNY. EUR excluded. That could happen in the next one or two years. This is important — status as a Reserve Currency creates a significant additional demand for that currency independent of other sources of demand, such as for payment and for investment.
So if the Pound Sterling was not a Reserve Currency, for example, its international buying power would be much weaker. Plud, Gold, China, Bitcoin. Can bitcoin reach world reserve currency scale?
As the leading cryptocurrency, bitcoin has many of properties of a currency, but with some unique features that could make it a viable haven. Ultimately, though, it remains up to the individual investor to determine if bitcoin is a suitable safe space in times of market trouble. Below, we'll compare gold and bitcoin as safe haven options.
There are several factors that make gold a strong safe-haven asset. Regardless of demand, supply remains disproportionately low. Gold cannot be manufactured like a company issues new shares, or a federal bank prints money. It must be dug up from the ground and processed. The precious metal used to be tied to the Dollar until when President Nixon severed the ties between U.
Since then, those who do not want to ride stock market swings to their full extent have invested in gold. Plus, as more people flee stocks and invest in gold, the price rises accordingly. Bitcoin is a blockchain-based cryptocurrency that shares some properties with its gold counterpart. Market participants may remember in when the price of one bitcoin surpassed that of a single troy ounce of gold for the first time.
Like gold, there is a limited amount of bitcoin. Satoshi Nakamoto, the pseudonymous creator of bitcoin, limited the total supply to 21 million tokens. Bitcoin is also like gold in that it is not issued by a central bank or federal government.
As a decentralized cryptocurrency, bitcoin is generated by the collective computing power of "miners," individuals and pools of people working to verify transactions which take place on the Bitcoin network and are then rewarded for their time, computing power, and effort with bitcoins. To ensure that the market isn't flooded, the Bitcoin protocol stipulates that these rewards are periodically halved, ensuring that the final bitcoin won't be issued until about the year For hundreds of years, gold has dominated the safe-haven asset arena, while bitcoin was launched just over a decade ago and has only achieved widespread recognition in the last few years.
Below, we'll compare these two investment options head-to-head:. Bitcoin is also difficult to corrupt, thanks to its encrypted, decentralized system and complicated algorithms, but the infrastructure to ensure its safety is not yet in place. The Mt. Gox disaster is a good example of why bitcoin traders must be wary.
Many years later, the legal ramifications of the Mt. Gox situation are still being resolved. Both gold and bitcoin are rare resources. The halving of Bitcoin's mining reward ensures that all 21 million Bitcoin will be out in circulation by the year While we know that there is only 21 million bitcoin that exist, It is unknown when all the world's gold will be mined from the earth.
There is also speculation that gold can be mined from asteroids, and there are even some companies looking to do this in the future. Gold has historically been used in many applications, from luxury items like jewelry to specialized applications in dentistry, electronics, and more.
In addition to ushering in a new focus on blockchain technology, bitcoin itself has tremendous baseline value as well. Billions of people around the world lack access to banking infrastructure and traditional means of finance like credit. With bitcoin, these individuals can send value across the globe for close to no fee.
Bitcoin's true potential as a means of banking for those without access to traditional banks has perhaps yet to be fully developed. Both gold and bitcoin have very liquid markets where fiat money can be exchanged for them. One major concern for investors looking toward bitcoin as a safe haven asset is its volatility. One need look only to the price history of bitcoin in the last two years for evidence. It has since recovered a portion of those losses, but is nowhere near its one-time high price point.
Besides overall volatility, bitcoin has historically proven itself to be subject to market whims and news. Particularly as the cryptocurrency boom swept up a number of digital currencies into record-high prices around the end of , news from the digital currency sphere could prompt investors to make quick decisions, sending the price of bitcoin upward or downward quickly.
This volatility is not inherent to gold for reasons mentioned above, making it perhaps a safer asset. In recent years, a number of alternative cryptocurrencies have launched which aim to provide more stability than bitcoin.