Many have compared bitcoin to gold. Some even call the world’s first cryptocurrency “digital gold”. As it turns out, there are many similarities in the historical performance of these assets.
As an emerging asset, bitcoin shows striking resemblance with gold, as demonstrated by the chart below:
The chart shows the performance of gold in the last 43 years as compared to that of Bitcoin since its inception. While bitcoin and gold price dynamics show much resemblance, many believe that bitcoin has more utility than the precious metal. As recently noted by US economist Paul Krugman, “Gold is dead… Bitcoin has more utility than gold.”
It is significant, that bitcoin has been showing more utility than gold since Q2 2017, despite the lasting price stagnation.
The bullish attitude to bitcoin has a lot of influencial supporters, no matter the market odds. For instance, the Winklevoss twins have been constantly sticking to their confidence in bitcoin’s ability to disrupt gold eventually:
“We think it’s a better gold, if you look at the properties of money. And what makes gold gold? Scarcity. Bitcoin is actually fixed in supply so it’s better than scarce… it’s more portable, its fungible, it’s more durable. It sort of equals a better gold across the board.”