Post
Topic
Board Bitcoin Discussion
Re: How many times we will make the same mistake? - History repeats Again & Again!
by
JayJuanGee
on 06/03/2024, 04:12:30 UTC
In regards to bitcoin, gold has been performing pretty badly, and you can zoom in and out of this timeline
https://www.longtermtrends.net/bitcoin-vs-gold/
right now it takes more than 200 oz of gold to buy 1 BTC,
I snipped the rest, but there is something very wrong with that chart.

Gold is currently about $2,037 per ounce, so you need about 30 or 31 ounces of gold to buy one bitcoin (current price $62,900) not 200.
O.k.. maybe the unit is not correct, but the trend seems to be correct, and if we look at bitcoin's overall market cap compared with gold, the trend is the same.. bitcoin is currently right around 1/10th or maybe 1/12th of gold's market cap and bitcoin is likely going to fairly easily get to 10x gold's market cap in this cycle or maybe the next 2-3 cycles, and then surely the time between bitcoin getting from 10x to 1,000x gold's market cap could take a while longer.. maybe 50-200 years.. and so we cannot really know for sure, even if we can see the trend, and we can even understand why bitcoin right around 1,000x better than gold... in terms of its various monetary characteristics, scarcity, divisibility, verifiability, portability, censorship resistance, costs in terms of needs for use of third-parties.

So, even if the details are not exactly clear, we should be able to recognize the ongoing power of bitcoin in terms of our own investment allocation choices, and if you want to keep a lot of gold instead of bitcoin because you believe that it serves some meaningful financial purpose (from here forward), then that's your choice. 

I will give you that there could be some Armageddon-type purposes to keep some physical gold, but that still likely is pretty low in terms of how much preparation that you really need in that direction as compared to bitcoin - even though bitcoin relies on communications and even electricity/power.

In follow-up to my earlier post. I don't claim to be any kind of gold follower, but here is a better chart that compares bitcoin and gold with the grey line showing the grams of gold per bitcoin (currently at 863.24), and the yellow line show the ounces of gold per bitcoin (currently at 30.45).

https://charts.bitbo.io/btc-gold/