Gold has exceeded many challenges over the last centuries, and it is seen as the best place to invest. However, some investors are proposing that Bitcoin (BTC) can be an excellent competitor to gold and that it has the greatest opportunity to dethrone gold as the safest haven to invest in.
Over the years, there have been other contenders to gold: florins, salt, and ducats; and none of them have been able to keep up with the market.
Bitcoin is a decentralized digital asset, and it is seen as the biggest competitor to gold’s value at the moment. During the closing part of 2017, the price of Bitcoin increased from $1000 to $19,000, and it is taking the same path as gold as a substitute for fiat currencies.
Gold and Bitcoin market chart
Gold had a big run-up in the 1970s. At that time, however, Richard Nixon unsealed the United States Dollars from gold, and that increased the worth of gold as a result of demand and supply. Gold increased from $20 to $30 an ounce to about $600.
However, the price of gold became bearish and decreased to $300 an ounce. In the year 2003, the gold-backed ETF was introduced into the market by the Rothschilds and the Deutsche Bank; and this skyrocketed the price of gold to $1300 an ounce, which is a 300% increase.
Similarly, if we are to take a look at Bitcoin at the moment, Bitcoin has an all-time high of about $20,000 – at the time of writing, the price of Bitcoin sits at $7,465, with a market capitalization of $128.09 billion, according to CoinMarketCap.
Bitcoin and gold charts look very much alike. Bitcoin (BTC) currently has the same bullish and bear runs as gold had in the year 1980s. It is important to know that gold’s chart happened in a 20-year cycle, while that of Bitcoin occurred within a year, but both charts look very similar. In Bitcoin’s case, it occurred within a year at a fast pace due to demand and supply.
The introduction of ETF could boost Bitcoin’s price to $60,000
As stated earlier, when ETF was approved on gold, there was a massive increase. And now, in the case of Bitcoin, ETF is set to be approved very soon, and we could actually see a massive bullish run if the approval isn’t a lock-down scenario. As in the case of the 300% increase on gold, Bitcoin’s price could rise to $80,000. But let’s just keep 26% off to be on safe side, so even if Bitcoin jumps in value by 273% instead of 300% as Gold did, it could rise to $60,000 – which will be a 940% return.
The market capitalization of gold – with all the gold that has been mined – is about $8.7 Trillion. However, if Bitcoin attains a $60,000 price mark, then, its market capitalization will be about $1.26 Trillion with a circulating supply of 21 million.
Bitcoin’s market capitalization at $60,000 has the tendency to increase further, if it gets more regulation clarity, and if a supreme country backs their currency using Bitcoin (BTC) as a reserve currency. There could be a whole lot more that can increase the market capitalization of Bitcoin at that $60,000. Meanwhile, as things stand, this is the right time to invest in Bitcoin due to the fact that great things are coming up.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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XRP Surges By 8% In A Surprise Bull Run
The new price surge that surrounded almost the entire crypto market brought quite a pleasant surprise for XRP holders, as Ripple grew in price by over 8% in the last 24 hours. In fact, XRP managed to achieve a price surge equal to that of Ethereum as of this morning.
While the third largest cryptocurrency is still quite behind ETH when it comes to market cap, many believe that it is only a matter of time before XRP regains its former glory. With that being said, a lot of people are still more than pleased with seeing Ripple climbing back to more stable levels, especially after a big price drop that hit the coin last week.
The new hike up allowed XRP to climb back to $0.446322. While this is still low when compared to its highest point in the last week ($0.52), the coin still seems to be well on its way to recovery. In fact, many believe that XRP has found a new bottom, one that is significantly higher than the last one. Most of this new success can be traced back to a price surge that Ripple has had recently when it even managed to briefly overthrow Ethereum as the second largest coin by market cap.
Despite its drop since then, XRP still remains one of the coins with the strongest growth in the last month. While the market is still far from stable,…
If Tether crashes, will that money pour into Bitcoin?
For a long time now, the so-called stablecoin, Tether (USDT) has been a topic of discussion within the crypto community.
Tether, as a stablecoin, is said to be fully backed by the USD. This allowed it to be one of only a handful of cryptos that can avoid volatility issues, due to the fact that it is backed by a stable fiat currency. However, for as long as it was around, Tether was very secretive of its bank accounts and funds in general.
While claiming to have the ability to back each of its USDT coins, many have questioned whether or not this can be true. At the time of writing (October 16, 2018), Tether has released 2,256,421,736 USDT in circulation. This means that it needs to have at least $2,256,421,736 in order to cover its circulating supply.
At this point, three questions emerge, and answering them could very well change the future of this stablecoin. The questions are as follows:
- Are all USDT coins fully backed?
- If yes, then where did that much money come from?
- If not, what will happen when the market discovers the lie?
Tether continues to keep secrets
As mentioned, Tether has always claimed to be able to back each of its coins. However, instead of operating on transparency, the coin used different tools, mostly opaqueness, misdirection, and playing the victim whenever someone tried to unveil what is truly going…
Is Bitcoin (BTC) Better Than USD?
Despite all its recent progress, cryptocurrencies still do not inspire trust in a lot of people. Many view them as unsafe money, with its very nature being doubtful. However, a recent report by the Polish Academy of Sciences’ Institute of Nuclear Physics shows that situation regarding cryptocurrencies may not be as bad as it seems. In fact, the report claims that Bitcoin might even be a better currency than it looks like.
Bitcoin vs traditional money
Bitcoin, as many are already aware of, is the first cryptocurrency. It was created a decade ago and was officially launched in 2009. But, even though it has been around for around 9 years at this point, it is still largely mistrusted by a lot of investors, especially when it comes to large institutions.
However, thanks to the Cracow-based Institute of Nuclear Physics’ recent report, this common opinion might actually be wrong. The Institute has conducted a detailed statistical analysis of the BTC market and has published the results in a scientific journal called Chaos: An Interdisciplinary Journal of Nonlinear Science.
Surprisingly enough, the report portraits Bitcoin in a very positive light.
The report started by commenting on the credibility of traditional money. In the past, money that people have been using was backed by specific material commodities, such as gold. These commodities gave the money its value and served as a guarantee that the money actually has worth. This is…
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