Earlier this week, Elon Musk held a Twitter debate with gold supporter Peter Schiff. The topic of the discussion was the advantages of Bitcoin as a store of value. Tesla CEO Elon Musk said then: “You might as well have cryptocurrencies.”
An email saying you have gold is not the same as having gold. You might as well have crypto.
Money is just data that allows us to avoid the inconvenience of barter.
That data, like all data, is subject to latency & error. The system will evolve to that which minimizes both.
– Elon Musk (@elonmusk) February 20, 2021
Musk has long been known for its tweets that move the market. Especially this week he showed his pumping power. Since yesterday, you can use both gold and BTC to store value. Yesterday at 10:49 UTC Bitcoin reached its peak at $ 57,634. This means that for one BTC, we could buy a kilogram of gold, which cost $ 57,336 yesterday.
When they lose their fiats, they gain BTC and gold
The price of gold relative to Bitcoin is at a record low while the price of Bitcoin itself is reaching new heights. The US dollar plunged sharply last summer. The reason was quantitative easing measures. The US Federal Reserve quickly printed an unprecedented amount of money. While government statistics said the inflation rate was only 1%, the cost of living and the prices of goods and services rose sharply during the pandemic.
Around this time, gold and Bitcoin also went up. On July 1, a kilogram of gold cost $ 57,093. By August 4, it was $ 65,477. During the same period, the price of Bitcoin increased from $ 9,145 to $ 12,034. Due to the weak position of the world’s main reserve currency, investors became interested in both gold and Bitcoin. Both these assets were to serve as a hedge against inflation.
The price of gold has dropped slightly since then, although it has remained roughly the same overall. The situation is different in the case of Bitcoin. The original cryptocurrency at the same time saw a fivefold increase.
How much more do you think Bitcoin will be next week compared to a kilogram of gold?