Bitcoin to Gold Ratio Highest Since BTC's All-Time High in May

The amount of gold needed to buy one BTC, "digital gold," is back on the rise again on the back of BTC's enormous gains.

Anirudh Tiwari
October 7, 2021
Blockchain News

‘Digital gold’ becomes more expensive to buy, with gold

As Bitcoin (BTC) went from trading under the $48,000 on Oct. 4 to currently trading above the $54,000 mark, the Bitcoin to Gold ratio back around 30, levels this metric witnessed at the peak of the bull run in May this year.

This ratio denotes the number of ounces of gold that it would take to buy one token of BTC. As the ratio rises, it indicates that Bitcoin is outperforming Gold, whereas the ratio declining would indicate that Gold is outperforming BTC.

This current rising trend took the ratio quickly from 25 at the end of Sep to nearly 30 at the time of writing, which is a clear sign of BTC outshining over gold.

However, this didn’t stop Jamie Dimon, the Chief executive officer of JP Morgan, calling BTC a “little bit of fool’s gold” in an interview with CNBC.

Source: Bitcoin to Gold Ratio

"I obviously don't think that it is fool's gold. I think it is a wonderful digital gold and has done a brilliant job of nailing that store of value narrative (..) I think we are still in a collectibles phase, but little by little it is establishing itself as one of the strongest monetary networks and absolutely a digital store of value," opined Leah Wald, chief executive officer of Valkyrie Investments, in an interview on Bloomberg Quicktake.

As bears face a setback due to the quickly rising prices of BTC, it is only clear that BTC is now far more valuable than gold and performs significantly better as an investment vehicle.

About Bitcoin

Bitcoin (BTC) is the first cryptocurrency to come into existence based on the whitepaper by Satoshi Nakamoto, the presumed pseudonymous person or persons that drafted the document in 2008. To this day, it holds its place as the flagship crypto token of the crypto-verse and often dictates how other tokens in the crypto economy perform. BTC has a market capitalization of just over $1 trillion, with the market capitalization of the entire market standing at $2.29 trillion, according to data from CoinMarketCap.

Don’t forget to download the BSC.News mobile application on iOS and Android to keep up with all the latest news for Binance Smart Chain and crypto!

Anirudh Tiwari

Anirudh is a cryptocurrency analyst and writer who specializes in derivatives, DeFi, regulations and CBDCs. He has a Master’s degree in Finance. Before delving into crypto, he worked with a leading U.S. based investment bank. Apart from work, he is a music connoisseur and likes to play the drums. His largest holdings in crypto are Ethereum, Cardano, and Polkadot.

Text Link

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.