Following the recent strong rise, investors’ eyes have once again turned to a comparison of Bitcoin and gold.
Bitcoin, the largest cryptocurrency, currently has a market capitalization of $2.34 trillion compared to $23.22 trillion.
According to the current charts, Bitcoin has reached approximately 10.09% of gold’s market capitalization. The analysis suggests that for Bitcoin to outweigh gold, its price must rise to $1,166,511. This represents an approximately ten-fold increase compared to Bitcoin’s current price.
When examining price movements in recent years, Bitcoin has performed much more powerfully than gold.
- 5 years: BTC +892%, Gold +72%
- 3 years: BTC +387%, Gold +95%
- 2 years: BTC +304%, Gold +76%
- 1 year: BTC +104%, Gold +36%
Looking at the performance from the beginning of the year, Bitcoin returned 25.9% and Gold returned 27.38%.
Bitcoin’s annual supply growth rate (inflation) is 0.83% and gold is 1.72%. Half of Bitcoin, which occurs about every four years, means that supply growth is more limited over the long term. However, gold production depends on mining capacity and recycling rate.
*This is not investment advice.
