Earlier this week, a discussion took place on Twitter between gold bullion dealer Peter Schiff, who began his tweets by talking about the comparative advantages of Bitcoin compared to gold as a store of value and as usual tilts the scale for gold, to respond to him, “Elon Musk” CEO of “Tesla” That gold and bitcoin work roughly the same way.
Elon Musk has long been known for his tweets that move the financial markets, especially in the recent period when he became more and more tweets referring to Bitcoin and the digital currency “Dogecoin”.
In various movements between assets, and we talk here about Bitcoin and gold, as the value of gold decreased and became estimated at 57 thousand dollars per kilogram, and bitcoin rose above this level, so that 1 bitcoin equals 1 kilogram of gold.
The number is fluctuating, as at the time of preparing this article, Bitcoin fell to the level of 56 thousand dollars and thus became less than the price of 1 kilogram of gold.
When paper money goes down, gold and cryptocurrencies go up:
The price of gold in relation to Bitcoin has reached an all-time low, while the price of Bitcoin itself is at an all-time high.
Last summer, the US dollar fell sharply due to quantitative easing measures.
The United States Federal Reserve quickly printed an unprecedented sum of money.
While government statistics said that the inflation rate did not exceed 1%, but the cost of living and prices of goods and services rose sharply during the period of the Corona virus epidemic.
Around this time, both gold and bitcoin rose as well.
On July 1, 2020, the price of a kilogram of gold was $ 57,093.
By August 4, the price of a kilogram of gold has reached $ 65,477.
In the same period, the price of Bitcoin rose from $ 9145 to its highest level on August 2, at $ 12034.
As the world’s first reserve currency deteriorates, many investors have turned to both gold and bitcoin as a hedge against inflation.
The price of gold has decreased since then, although it has remained fairly stable.
But Bitcoin is the unique currency during this period, as it nearly quadrupled what it was in August 2020.
Will Bitcoin continue its way and settle for 1 Bitcoin = 1 kilo of gold?