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The debate about the Bitcoin (BTC) and gold rivalry took a new turn when legendary trader Peter Brandt weighed in on the conversation recently. In a post on the X app, Peter Brandt shared a chart, where he proved that over the past year, Bitcoin has reigned supreme over gold.
Bitcoin versus gold rivalry
Alex DovbnyaFor centuries, gold has served a dominant function as a hedge against inflation and as a store of value. Its efficiency as a store of value is, however, being questioned with the emergence of Bitcoin.
While gold has a mild growth rate, Bitcoin has proven to be a rapid riser with a massive growth rate that outpaces the former on any simultaneous time frame. The BTC Gold Ratio chart, or the amount of gold required to buy one Bitcoin, has been on a steady surge for the past year.
Pegged at 29.91 at the time Peter Brandt shared his post, up from around 20 at the start of the year, it means more gold is now needed to buy the equivalent of one BTC. This metric made Peter Brandt rhetorically ask whether Bitcoin is dead and gold is king, as many gold proponents try to prove.
New Bitcoin charm
Though the relevance of gold cannot be shoved aside, Bitcoin brings new technical and monetary advantages that make it a more economically viable bet. Unlike gold, whose supply is unlimited, Bitcoin comes with a maximum supply of 21 million.
While gold can be extracted without restrictions, the Bitcoin halving event slated for later this January triggers a defined emission of BTC on a daily basis.
Yuri MolchanThese pseudo-deflationary features and the massive capital inflow from spot Bitcoin ETF products have been adding up to a complementary duo that is driving the price of the asset to new highs.
At the time of writing, Bitcoin’s price is pegged at $70,040, down by 1.33% in 24 hours. Gold, on the other hand, is priced at $2,354.16, down by 0.7% in the past 24 hours.
Alex Dovbnya
U.Today Editorial Team
Vladislav Sopov
Dan Burgin