Bitcoin was launched in 2009, with a decentralized trading method, which raised a storm in the money market and became the cryptocurrency that many investors concern. Last year was the most popular year for Bitcoin, and the price was rising by more than 8,000 US dollars. However, the downward trend of Bitcoin prices this year hit a record. Some people say that Bitcoin is "digital gold", so what is the price trend of Bitcoin compared with gold?
Bitcoin and gold are more similar than expected
Bitcoin has been in the market for less than a decade, but has some incredible similarities to gold in terms of performance.
Twitter user Nunya Bizniz posted a picture showing the price of Bitcoin between 2013 and 2018 and the price of gold from 1976 to the present. The similarities are pretty shocking.
The historical price trend of Bitcoin is very much the same as gold.
This Twitter user said that both charts show incredible similarities in the trend. It is clear that the time frame of gold is longer, but the results are surprisingly similar.
Not long ago, the famous American economist Paul Krugman said that bitcoin is more practical than gold. In fact, he explained that gold is dead, and Bitcoin is more practical than gold.
He said: "Bitcoin will have value in the future."
At the same time, entrepreneur and investor John Pfeffer explained that Bitcoin is the first viable gold substitute. This is similar to the past statement of famous Winklevoss twins: “Using Bitcoin alone, we think Bitcoin is more subversive than gold. If you look at the currency's attributes, we think it's a better gold. What makes gold a gold? Scarcity. The number of Bitcoin is actually fixed. It's scarcer. It's more portable, replaceable, and more durable. In a way, it's a better gold."
As can be seen from the above explanation, the historical price trend of Bitcoin is very similar to gold. However, bitcoin is easy to carry, and the transportation of gold is more difficult. Although the prices of gold and bitcoin are not stable, these two currencies have similarities in terms of the historical trend of prices.