All Eyes on Bitcoin and Gold: How Much Will BTC Price Need to Rise to Surpass Gold’s Market Cap? Here is the Utopian Scenario
Markets in the United States are falling on concerns that the US central bank may be losing its independence due to political pressure being exerted on the Fed by President Donald Trump.
However, these tensions seem to have benefited the world's largest cryptocurrency, Bitcoin and gold. Bitcoin climbed above $90,000 today with a rally it made after a long break. On the other hand, ounce gold touched $3,500 for the first time in its history today and is at record levels again at $3,407 at the time of writing.
There have actually been predictions for a long time that Bitcoin, also known as digital gold, could surpass the market value of gold. However, with the big rally it has experienced in recent months, gold seems to have widened the gap a bit. While the price of BTC has fallen by 14% in the last three months, gold has increased by 26%.
When we examine the data, we see that the total market value of Bitcoin is currently $1.8 trillion. The total market value of gold is currently $23.79 trillion. In a hypothetical environment where the total market value of gold remains constant, the BTC price would need to reach $1.19 million for Bitcoin to surpass the market value of gold.
According to estimates, the current annual supply increase of BTC is 0.83%, while that of gold is 1.72%.
*This is not investment advice.
