At the current valuations of Bitcoin and gold, a single Bitcoin is now worth nearly three ounces of gold.
At the current valuations of Bitcoin and gold, a single Bitcoin is now worth nearly three ounces of gold.
As Bobby Lee, BTCC CEO, points out that eventually the price of one Bitcoin will be compared to one kilogram of gold:
$BTC prices are at almost 3 ounces of #Gold. Eventually, price of 1 #Bitcoin will be compared to 1 kilogram of gold!
We are 8.7% there now. pic.twitter.com/fI1keCbffX— Bobby Lee (@bobbyclee) August 12, 2017
The news broke after Bitcoin prices crested over $3,700 each.
Gold is currently selling at $1,279 per ounce, meaning that three ounces is around $3,800, or just a $100 more than the price of a single Bitcoin.
This is especially great news for China that, according to Bobby Lee, is the largest producer of both gold and Bitcoin:
#China is the world's larger producer of both #Gold and #Bitcoin. This year, 2017, China will mine:
~460,000 kilos of gold
~460,000 bitcoins— Bobby Lee (@bobbyclee) August 12, 2017
The reality that Bitcoin is not plummeting may indicate a wider market awareness of the stability and longevity of the cryptocurrency.
One CNBC advisor recently commented that Bitcoin was certainly a better investment than gold through 2017.
Other advisors had previously indicated that Bitcoin would remain a store of value in spite of market fluctuations as well.
The additional advantage of Bitcoin is the increasing liquidity that is entering the marketplace. Instruments like Bitcoin debit cards and simpler digital transfers mean that value can be transferred and used openly.
The advantage over gold should be obvious, with the simplicity of digital transfers being far better than handing a friend gold bullion.
