Bitcoin’s meteoric price rise is showing no signs of slowing down, and its latest all-time high has priced the asset higher than a 20-ounce gold bar.
Over the past six hours, Bitcoin (BTC) prices topped $40,000 briefly, according to Tradingview.com. The move has added a further 5% over the past 24 hours, and the rally is showing no signs of cooling down yet.
Industry observers often call Bitcoin “digital gold,” as it is a store of value asset, and this latest price peak pushed prices higher than those for the standard 20-ounce gold bar.
At the time of writing, gold is currently trading at $1,912 per oz, according to GoldPrice.org, so a 20-ounce bar would set you back $38,240. Bitcoin’s price, taken at the same time, is a little over $39,000.
The secretary and vice chairman of the DigiByte Foundation, Rudy Bouwman, while touting his own cryptocurrency said:
This rally is slightly different from the one in 2017, as it is being primarily driven by institutions, which unlike retail traders tend to hold the asset for long-term investment rather than flip it for a short-term profit. This notion enforces the store-of-value properties of Bitcoin, making it more comparable to gold than ever before.
In terms of performance, Bitcoin has made a whopping 378% gain over the past 12 months, whereas gold has only managed to gain 21.6% in the same period.
Additionally, Bitcoin is still making new all-time highs, but gold prices have retreated 7.6% from theirs, which was $2,070/oz on Aug. 6, 2020.
Gold bug and perpetual Bitcoin basher Peter Schiff finally admitted that Bitcoin was actually taking demand away from gold, as evidenced by those figures.
With the price of a single Bitcoin now higher than a bar of gold, the question remains: How much further can it climb?