Peter Schiff, a skeptic of gold and bitcoin, was only 17 years old when the yellow metal even had its true value. Meanwhile, Bitcoin (BTC), a much smaller asset, is close to its full-time high after adjusting for inflation after just three years of downward pressure.
According to data from Visual Capitalist, the gold price in 1980 reached $ 678. When calculating inflation based on estimates from Officialdata.org, $ 678 in 1980 would have the same purchasing power – about $ 2142 in 2020.
According to TradingView, the precious metal technically exceeded the full-time high of the US dollar this year and reached 2,075 dollars. However, record purchasing power in 1980 was not interrupted. After rising to $ 2,075 in August, the price of gold returned, close to $ 1,778 an ounce at the time of publication.
The Bitcoin price reached its last all-time high in 2017 at $ 1981.99, according to the Coinbase Price Index. Adjusted for inflation, the reference value bitcoin is up $ 21131.02, according to Officialdata.org.
Gold has stood the test of time as a store of value for thousands of years as it underwent price discovery in every time when people determined the value of a mineral by buying and selling. The game has probably changed with the advent of BTC, which is similar to the digital representation of gold, a hard-to-find item used to store value. Bitcoin poses fewer barriers to storage and transactions and has a limited offer.
The economist has pitted gold against bitcoins several times, often deducting the value of bitcoins. While gold moves slowly in price compared to bitcoin, the chef loves gold for its role in preserving wealth.
Bitcoin has experienced a price increase in recent weeks, reaching $ 100 from the highest price on Coinbase. Raoul Pal, a macro investor, recently announced his intention to sell his gold stack and buy more bitcoins.
On November 29, he tweeted: “Tomorrow I have a sales order to sell all my gold and expand to buy BTC and ETH (80/20).” “I have nothing else (other than a few bond requirements and a few dollars),” he added, “98% of my liquid net worth. You can not rate me other than #responsible long. ”
In the midst of the bullish rally in Bitcoin, it is said that people are leaving gold in large quantities, as evidenced by the recent record highs of power.