Bitcoin (BTC) has hit another milestone and this time against gold bullion, the world’s oldest reserve asset, offering further confirmation that demand for digital assets is on the rise.
It has been reported according to MarketWatch data that the digital currency reached a high of 15.40 gold ounces, surpassing the previous peak from December 2017, as Bitcoin zipped past $29,000 on Friday.
However, the Bitcoin-gold rate peaked at 15.62 ounces during the early morning.
The report said that Bitcoin saw a massive increase of around 300% in 2020. Gold also posted impressive gains for the year, though they paled in comparison to Bitcoin’s meteoric rise. It’s price ended the year on a 25% gain.
Likewise, Bitcoin’s biggest proponents believe the digital currency is eating away at gold’s market cap as investors opt for the efficiency, portability, and proven scarcity of the asset.
Interestingly, that view is also shared by JPMorgan Chase analysts, who believe Bitcoin’s digital gold narrative is drawing capital away from precious metals.
Thus, some believe that Bitcoin’s supply squeeze could send prices higher over the course of 2021.