Bitcoin Сapitalization Reaches 1.62% of the Total Market Value of Gold
Kataryna Kovtun July 31, 2020
Bitcoin capitalization reaches 1.62% of the total market value of gold
Against the background of the collapse of the dollar against the euro, bitcoin and gold are showing steady growth. However, the uptrend in the cryptocurrency market is much more stable.
On July 28 and 30, gold dropped noticeably in price.
Even the well-known proponent of the precious metal, financial expert Peter Schiff, drew attention to this.
“Shares in “gold funds” have lost all their gain since July 20, when the price of an ounce was $ 100 lower. This is a classic wall of worry. Equity investors fear a bull market every time gold falls,” — he said.
In turn, the price of bitcoin is showing steady growth and at the time of this writing is $ 11,138.
Now for 1 BTC you can buy 5.6 ounces of gold. And the total capitalization of bitcoin is 1.62% of the capitalization of the precious metal.
At the time of writing, the capitalization of the cryptocurrency market is $ 335.6 billion, of which $ 205 billion is Bitcoin.
The current Bitcoin rally will be qualitatively different from the previous ones, according to Cameron Winklevoss, co-founder of the American cryptocurrency exchange Gemini.
“There is exponentially more capital, human capital, infrastructure and high quality projects in the world today than in 2017. Not to mention the very real specter of inflation that Fiat supporters will face in the future ” — he wrote.
According to a number of experts, Bitcoin is highly likely to continue to grow to the level of $ 13,000 and above.
Earlier, Morgan Creek Digital co-founder Anthony Pompliano and financial expert Peter Schiff argued between bitcoin and gold. As an argument in favour of the cryptocurrency, Pompliano pointed out that Bitcoin has outpaced the precious metal in terms of dynamics over the past decade. Since the beginning of 2020, its value in US dollars has increased by 56.1% versus 27.6% for gold.
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