Tuesday, June 23, 2020

Metal vs. Digital

Bitcoin is often labeled as digital gold, though many disagree with the comparison. Over the past few months, global economic events and the halving have breathed new life into this discussion. Let’s take a look at a few stats on the topic.

In terms of supply and demand, the cryptocurrency and the precious metal behave quite differently. Gold supply has outpaced demand over the last decade. Bitcoin, on the other hand…

https://preview.redd.it/xosfxi5eum651.jpg?width=1920&format=pjpg&auto=webp&s=9426e662bf508dc567d691be538e5d5e60011dd3

The number of Bitcoin addresses holding more than 1000 BTC has been steadily rising over time, which implies more whales in the ocean, but also shows growing trust in BTC as a store of value appropriate for holding large amounts.

https://preview.redd.it/vwwo1adfum651.jpg?width=1920&format=pjpg&auto=webp&s=b96decc6427caa5def4f3016ff0caf5afa77a27f

Gold is touted as a safe haven due to its lack of correlation with other assets, especially stocks. Bitcoin’s safe haven status is still under debate, but data shows its price is only correlated with other cryptocurrencies, not gold or S&P.

https://preview.redd.it/k33huyioum651.jpg?width=1920&format=pjpg&auto=webp&s=827559229dd831e8d64aae847ed7760de78eaf4a

While gold has been used as a store of value for thousands of years and successfully served as a safe haven, bitcoin still has a lot to prove. But the fact that this is a legitimate discussion already shows how far crypto has come over the past decade!


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