Gold Vs Bitcoin: Gold crossed $2000 per Ounce, Will Bitcoin reach $20K in 2020?

Author: Sohrab Khawas

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    Story Highlights
    • Gold surpassed $2000 for the first time.

    • Bitcoin too crossed the $10000 threshold and reached above $11000.

    • when the US dollar was losing its value, Gold and Bitcoin surged.

    • The next bull run for Bitcoin is to attain and cross its previous all-time high.

    Gold which kept rising has now crossed the $2000 mark per ounce, which is its all-time high, currently. The falling value of the US dollar due to the FED printing excess money might lead the investors in search of new investment heaven.

    On the other hand, Bitcoin which was struggling to cross $10000 from the past couple of months, has also reached above $11000. Moreover, many analysts predict the digital asset could reach $12000 very soon.

    If the price growth chart is considered, Gold which is a very old asset took thousands of years to attain the present value. In contrary, Bitcoin in just 8 years of its inception touched its all-time high of $20000, fell drastically to less than $4000.

    But, it recovered very quickly to cross $11000 and is expected to surge and move towards its target.

    Is Gold and Bitcoin Price Correlated?

    Gold and bitcoin both are assets on which one can invest. Considering the recent bull run of the digital asset, it has risen nearly 24percent while gold has soared with only 14 percent rise at the same time.

    As per bitcoin insight provider ecoinometrics, bitcoin’s growth rate is almost two times the growth rate of gold. However, a bitcoin influencer Lark Davis predicts that bitcoin price would reach $20000 much before the speculated time.

     He says, “ Gold is over $2000, the same forces pushing metals up will continue to push bitcoin,”

    Yet another Bitcoin promoter and the hosts of Keiser Report, Max Keiser also tweeted that, if gold rises by $1 then bitcoin would rise by $25. Hence if gold reaches $4000, then bitcoin would be priced between $50,000 to $60,000.

    Bitcoin is Available but Gold is Unaccessible- Report

    A team of analysts from JP Morgan have come with a report stating that the investors are split over their favourite investment asset. The young millennials are more attracted towards bitcoin whereas the old generation continues their tendency on gold.

    The major contrast in the report was the availability of the asset. While 84percent of the total 21 million bitcoins are widely available for trade, gold suffers scarcity. As per the report, during the pandemic situation, bitcoin is available but the older generation can’t get enough gold to invest.

    In a nutshell, the whole story can be summarized that both assets are looked up to alternative hard money as the value of the US dollar declines. As gold touch it’s an all-time high, bitcoin is also expected to move towards its target.

    But the point to note is, bitcoin’s value increases almost two times that of gold as per analyst. Therefore, which asset is a better option, can be analyzed by doing self-research.

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