Bitcoin continues to surpass gold as an investment in 2020, despite the fact that the precious metal provides the largest return in a decade.
Data shows that despite the increase in gold this year, Bitcoin (BTC) still outperforms all overall assets in terms of return on investment.
Bitcoin “devours the world of money”
Bitcoin, which has just completed its second best quarter on record, increased nearly 50% in 2020, while gold handled half that rate of 25.6%.
The S&P 500, to which Bitcoin has shown a strong correlation, is only 5.5% higher than it was at the start of January. Despite its growing strength, the US dollar has achieved savings of only 2.2% year-to-date, while oil is losing heavily, with WTI down nearly 35%.
According to famous statistician Willie Wu, the downsizing of the Bitcoin profitability study against gold since the advent of the cryptocurrency in 2009 strengthens Bitcoin ownership.
The numbers seem to speak for themselves. $ 1 bitcoin bought a year ago will give the owner a profit of $ 0.31, and gold $ 0.27.
Until the end of 2017, when BTC / USD began to consolidate after hitting highs of $ 20,000, the differences were more pronounced. According to Wu, one dollar invested five years ago is now worth $ 44.43, and $ 1 gold equals $ 1.67.
The US government debt reaches $ 27 trillion
As reported by Cointelegraph, Wu stated that he believes Bitcoin will soon decouple from gold and other traditional markets to chart its price path.
The cryptocurrency continued to resist criticism from gold bugs during the fluctuations of 2020, with gold chain bugs Peter Schiff as one of the top skeptics. In recent weeks, Schiff has tempered his doubts by focusing on the US dollar and the country’s financial debt.
According to the US National Debt, the total US debt exceeds $ 27 trillion for the first time in history.
“The government debt has just exceeded $ 27 trillion, about another $ 7 trillion since Trump took office.” If [Donald Trump] only has one term, he will probably add more to government debt in 4 years than Obama in eight years, ”Schiff wrote Tuesday.
Worse still, the first period [Joe Bidens] may add up more than both.