Following the recent strong rise, investors’ eyes have once again turned to the comparison of Bitcoin and gold.
The market capitalization of Bitcoin, the largest cryptocurrency, currently stands at $2.34 trillion, compared to $23.22 trillion for gold.
According to the current chart, Bitcoin has reached approximately 10.09% of gold’s market capitalization. Analysis suggests that for Bitcoin to surpass gold, its price would need to rise to $1,166,511. This represents a roughly tenfold increase compared to Bitcoin’s current price.
When examining the price movements in recent years, Bitcoin has performed much stronger than gold:
- 5 years: BTC +892%, Gold +72%
- 3 years: BTC +387%, Gold +95%
- 2 years: BTC +304%, Gold +76%
- 1 year: BTC +104%, Gold +36%
Looking at the performance since the beginning of the year, Bitcoin has returned 25.9% and gold has returned 27.38%.
Bitcoin’s annual supply growth (inflation) is 0.83%, while gold’s is 1.72%. Bitcoin’s halving, which occurs approximately every four years, means more limited supply growth in the long term. Gold’s production, however, is dependent on mining capacity and recycling rates.
*This is not investment advice.