Perianne Boring also talked about gold and the US dollar
In your interview for CNBC’s Squawk Box program, the founder and president of the Digital Chamber of Commerce, Perianne Boring, shared why she believes Bitcoin could reach $ 288,000 this year.
She also shared why Bitcoin is eating away at the gold slice in the market.
“Stock to flow says #bitcoin should be priced at $ 100,000 to $ 288,000 this year… Stock to flow also says one #bitcoin will be 10,000 ounces of gold in 2029. That’s what people mean when they say #bitcoin is eating gold, ” @PerianneDC of @DigitalChamber on valuing #btc. pic.twitter.com/dJlBCLUZnT
– Squawk Box (@SquawkCNBC) April 9, 2021
“Stock to flow says #bitcoin should be priced at $ 100,000 to $ 288,000 this year… Stock to flow also says that a #bitcoin will be worth 10,000 ounces of gold in 2029. That’s what people mean when they say #bitcoin is eating the gold ”,
“Bitcoin is expected to be worth $ 72,000 today and could reach $ 288,000 this year”
According to a formula developed by one of the members of the advisory board of the Digital Chamber of Commerce, today the largest cryptocurrency in the world is expected to be valued at $ 72,000.
Perianne Boring pointed out that this formula is used by several technology investors today to evaluate a network.
However, there is another model that the camera uses: the well-known stock-to-flow model, adopted for Bitcoin by the famous analyst and investor known as PlanB.
According to the model, the flagship cryptocurrency is expected to cost $ 100,000 or $ 288,000 in 2020. She mentioned that using the US dollar in Bitcoin valuation through the stock-to-flow model produces a 94% correlation with the BTC.
If you use gold in this model for Bitcoin, the stock-to-flow becomes 99% correlated.
“Bitcoin is eating gold”
The president of the Digital Chamber of Commerce also explained what analysts mean when they say that Bitcoin is eating gold.
According to the stock-to-flow model mentioned above, in 2029, a Bitcoin will be worth 10,000 ounces of gold, in Boring’s view.
Gold (XAU) has been down since August last year, when it hit a record high of $ 2,075. On November 30, it dropped to $ 1,763 and is currently trading at the $ 1,739 level at the moment.
Bitcoin reached a new historic high of $ 61,800 on Sunday, March 14, and touched up $ 60,000 on April 2. As of press time, BTC is changing hands at $ 58,650.
Prominent Bitcoin hater and gold bug, Peter Schiff, however, believes that this is a temporary problem for gold and that in the future, investors will return to it, abandoning Bitcoin forever.