Bitcoin Replaces Gold At A Stunningly Fast Pace: Analysis

Bitcoin replaces gold at a stunningly fast pace and the narrative is taking place across the finance industry with cryptocurrencies becoming the future so let’s take a closer look at the analysis in our latest BTC news.

The digital gold narrative already took a major dent out of the metal’s momentum as per the top Bloomberg Intelligence analyst where most indicators point to “Bitcoin replaces gold” at an accelerating pace.  The term “gold standard” exists because the asset stood the test of time as the best form of money in the world which has historically been seen. Fiat currencies were once pegged to the precious metal and it is still used as investment and hedge against economic distress and inflation.

However, that was once upon before BTC. Almost everything that makes gold “precious” cryptocurrency can do better. Beyond the underlying protocol as an application layer, the transparency of the asset and hard-capped supply of 21 million BTC is the most valuable attribute which raises the gold standard which the metal set itself. BTC is still in infancy and it will be built upon it just now while gold will remain the same store of value that it has always been. The metal offers no upgradability and isn’t scarce or transparent which is costly to move in larger amounts.

Digital #Gold Pushing Aside the Old Guard –
Gold will always have a place in jewelry and coin collections, but most indicators point to an accelerating pace of #Bitcoin replacing the metal as a store of value in investor portfolios. pic.twitter.com/RR0CCWmksF

— Mike McGlone (@mikemcglone11) March 8, 2021

Bloomberg analyst Mike McGlone said that most indicators point to the asset replacing gold at an accelerating pace. McGlone is clear to say “most indicators” because not all of the indicators are suggesting the pace will continue as sharp for the time being. There’s no denying that gold days are numbered as a store of value compared to BTC. At more than $10 trillion and $1 trillion respectively, the gold market cap and the BTC market cap will get closer to parity in the next several years. The short-term correction where gold gains some ground against BTC could be in preparation.

According to the TD Sequential on the monthly timeframes, gold is poised to reverse against BTC and this could be due to a collapse in BTC or an increase in gold relative to the cryptocurrency. It’s important to note that once assets are in a powerful trend, these signals can be ignored. The long-term trend for BTC is up while gold falls relative to the crypto for the near-future.