2020-3-31 20:41 |
Gold proponents who added more gold to their portfolios while completely ignoring the flagship cryptocurrency in March of 2012 missed out on spectacular gains. Crypto analyst Bitcoin Macro recently noted that bitcoin (BTC), has vastly outpaced the precious yellow metal over the last eight years.
Hating Bitcoin Has Cost Gold Fanatics 137,528% Gains Over The Last Eight YearsIf you are a Gold enthusiast and you invested in gold instead of bitcoin you should be kicking yourself right now for not buying sats. Since March 2012, BTC has surged by over 137,528% to date! Gold, on the other hand, has lost 2.5% eight years later.
$1000 invested in bullion in 2012 has depreciated to $975 at the moment, while $1000 that was invested in BTC has appreciated by over 137,000% to be worth $1,376,280 at present. Evidently, bitcoin’s growth beats Gold’s handily.
A short story about opportunity cost.
Since March 2012:
• Gold is -2.5%
• Bitcoin is +137,528%
$1,000 invested in Gold is now worth $975.
$1,000 invested in Bitcoin is now worth $1,376,280.
Hating on $BTC has cost Gold fanatics 7-figures over the last 8 years alone!
Wow.
This shows that despite the recent drop from above $10k to the present $6,347 price, bitcoin remains the better investment alternative in comparison to gold. In fact, some analysts believe that bitcoin’s upside potential is limitless.
Bitcoin Is Currently Undervalued Based On The Stock-To-Flow ModelThe stock-to-flow (S2F) model maps the price of bitcoin alongside other naturally-scarce assets like gold and silver. The creator of this model, PlanB, took to Twitter today to compare the stock-to-flow ratios of assets like bitcoin, gold, silver, palladium, and others. Gold has the highest stock-to-flow (SF) ratio of 58 while BTC comes in third place with an SF ratio of 27.
With an SF of 58, gold boasts a market capitalization of $10 trillion. In contrast, bitcoin has a $100 billion market value with a 27 ratio. After the May halving, BTC’s SF will be 54 – just a few hairs below gold’s. After the halving in 2024, BTC’s ratio will be above 100. This simply suggests that bitcoin is massively undervalued at the current prices.
Basically #bitcoin is totally undervalued and that means one of two things. 1. People don’t know or understand what BTC is or 2. Certain people don’t want you to know or understand what BTC is. I’ll go with 1 for now.
— Jjdub (@jjwdub) March 30, 2020PlanB predicts that a full-fledged bull market will begin immediately after halving and bitcoin will soar to $100,000 heights in no time. Thus, going by the stock-to-flow model, bitcoin achieving a market value of over $1 trillion is still on the cards in the next few years.
And after outperforming gold by such a huge margin over the last eight years, we should expect nothing less from the king of cryptocurrencies in the coming years.
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