Bitcoin overtakes gold as it hits all-time high

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BTC has reached another landmark, this time against gold bullion, the oldest reserve currency in the world.

Bitcoin’s price claimed another all-time high on Friday, this time against gold, giving more evidence that appetite for crypto currencies is on the rise.

As Bitcoin (BTC) zipped past $29,000 on Friday, the digital currency reached a high of 15.40 gold ounces, surpassing the previous peak from December 2017, according to MarketWatch data.

Bitcoin priced in gold bullion via MarketWatch

According to U.Today, the bitcoin-gold balance peaked at 15.62 ounces in the early morning hours.

2020 was a watershed year for Bitcoin as institutional adoption helped catalyse the bull market, unlike any we’ve seen so far in its 11-year history. The biggest cryptocurrency in market capitalisation, Bitcoin saw a huge rise of around 300 trillion in 2020.

Gold has made remarkable gains for the year, even though they paled in comparison to bitcoin’s meteoric rise. The spot price of yellow metal finished the year with a 25% rise.

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Bitcoin’s biggest advocates claim that the digital currency chips away at the gold market cap as consumers opt for the quality, portability and demonstrated scarcity of the commodity. Astonishingly, that view is also shared by JPMorgan Chase analysts, who believe that bitcoin’s digital gold story draws money away from precious metals.

Some assume that the supply crunch of Bitcoin could send higher prices over the course of 2021. As Cointelegraph recently announced, Grayscale, the digital asset manager, purchased almost three times the BTC mined in December. Demand from PayPal, Cash App and others have led to the obvious scarcity of BTC supplies.

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