Gold is often compared to Bitcoin, but let’s look at the differentiation of their actual price. At the prices of today, 1 oz. Approximately 0.15 BTC of gold. To compare, 1 oz. In 2011, the value of the metal was 584 BTC.
Gold is often claimed as a cover for global calamity. Commonly viewed by investors as the “safest bet,” it has been proven to be resilient over the years and even significantly appreciated in value. However, the slow uptick of gold pales compared to the parabolic rise of Bitcoin’s own.
Bitcoin vs. an Ounce of Gold
By comparing BTC’s price to an oz. Of gold, it becomes clear how much Bitcoin has grown over the precious metal in just a short 8 years. The numbers are here.
- In 2011, 584 BTC = 1 oz. of gold
- In 2012, 159 BTC = 1 oz.
- In 2013, 6 BTC = 1 oz.
- In 2014, 3.5 BTC = 1 oz.
- In 2015, 2.5 BTC = 1 oz.
- In 2016, 1.6 BTC = 1 oz.
- In 2017, 0.18 BTC = 1 oz.
- In 2018, 0.16 BTC = 1 oz.
- In 2019, 0.15 BTC = 1 oz.
Overall, the numbers show how much Bitcoin relative to the metal has grown. It should also be noted that for their given year, the two prices are based on the average.
Bitcoin Still Has Room to Grow
Despite this relative oz growth. Of gold, Bitcoin is still a small fraction of the market capitalization of Bitcoin. If Bitcoin were to capture only 10 percent of the entire market capitalization of the metal, the price would be around $33,000 for each Bitcoin. So, if it wants to be seen as a proper’ value store’ on par with its competitor, the leading cryptocurrency still has a long way to grow.
The metal isn’t just functionally linked to Bitcoin, though. The two markets also often overlap and appear to correlate with each other. Both show bearish patterns in the short run. Although Bitcoin’s price tends to be much more volatile than gold, analysts have found enough overlaps to argue between the two for market correlation. As Bitcoin grows in market capitalization and importance, we will probably see this correlation grow stronger.