The Bitcoin (BTC) price topped $40,000 over the past eleven hours and its latest all-time high (ATH) hit the asset higher than a 20-ounce gold bar.
It has been reported by Tradingview.com that Industry observers often call Bitcoin “digital gold” as it is a store of value asset, and this latest price peak pushed prices higher than those for the standard 20-ounce gold bar.
However, according to Goldprice.org, gold was trading at $1912/oz a few hours ago. At the same time, Bitcoin’s price was a little over $39,000.
Rudy Bouwman, the Secretary and Vice Chairman of the DigiByte Foundation, said:
“Bitcoin will become like gold bars, only a store of value.”
The report said that the rally is slightly different from the one in 2017 as it is being primarily driven by institutions that, unlike retail traders, tend to hold the asset for long term investment rather than flip it for a short term profit. This notion enforces the store of value properties of Bitcoin making it more comparable to gold than ever before.
Likewise, in terms of performance, Bitcoin has made a whopping 378% over the past 12 months whereas gold has only managed to gain 21.6% in the same period. Bitcoin is still making new all-time highs but gold prices have retreated 7.6% from theirs, which was $2,070/oz on August 6, 2020.
Thus, Peter Schiff, the Gold bug and perpetual Bitcoin basher, stated:
“To the extent that Bitcoin is actually taking any demand away from gold, that’s making Fed governors extremely happy. A rising gold price is what central bankers fear most. Bitcoin is their best friend, which may explain why regulators aren’t in a hurry to help pop the bubble.”