For almost a year, graphical and behavioral comparisons of bitcoin and gold have always been controversial. Many websites and conferences have referred to Bitcoin as digital gold.
Bitcoin photos have always been the golden coin. An image that evokes digital gold in the minds of viewers and everyone. Graphically, there is a correlation between these two assets.
In financial markets, correlation is a statistical concept that shows how two currency pairs move in relation to each other.
Currency pairs tell us that two pairs of currencies move in the opposite direction, or in random order, over a period of time.
If you want to work on multiple currencies, it is important to know the currency pairs and their behavioral correlations.
In fact, our use of solidarity is in two ways:
Finding recursive or extensible patterns in each of these pairs.
Identify the most benefit we can get from the related pair.
Normally correlated pairs will be followed by a time lag.
But does the graphical behavior of bitcoin and gold correlate?
The answer to this question is quite relative. But in general yes, the two assets are correlated.
Although the Ramos market and, at the top of it, Bitcoin is a vibrant, highly volatile market, it behaves in terms of behavior and in response to support, resistance and downturns and ascents typically with a few days' delay in gold behavior.
While Bitcoin's ability to dominate the financial system is popular, it is unclear what will eventually lead to Bitcoin adoption. Nick Bhatia, research strategist at Open Node and Tetra Labs in support of bitcoin as an alternative to centralized monopoly money, said:
<Bitcoin is a powerful technology for transactions and savings. The importance of bitcoin is no less important than issues such as freedom of expression, money, transaction platforms and technologies that enable global participation.> Batting out the similarities between gold and bitcoin as a scarce asset, Batia predicted that in the future, bitcoin, like gold and the US Treasury, would be accepted as a risk-free asset.
<Liquidity is what makes bitcoin and gold look like>, he said. The importance of this is that bitcoin can be converted to dollars or other currencies around the world. There is no market or currency available to operate or sell bitcoin. The same is true of gold. <In addition, Batia also pointed to Bitcoin's <slow and steady> increase in value across individuals and institutions, and said that most of the global investment funds' dependency on Bitcoin is increasing.
From an investment perspective, it's not about worrying about bitcoin being more valuable than gold or vice versa. You can choose them for long-term investment.
One of the attractive reasons for investing in these two assets is the growth rate. Investing in less correlated assets can have a higher return on investment.
The global economy is suffering from a recession. But the value of bitcoin and gold is not highly dependent on the global economy.
Bitcoin is like gold. Both of these assets are scarce. Extracting both is difficult. Both resources are limited.
So there are about 2 million bitcoins to extract. This extraction will take up to 2 years.
The main difference between bitcoin and gold is the easy use of bitcoin for money as well as faster transfer and bitcoin security.
Bitcoin transfer is faster than money transfer action. Money transfer between intermediary banks takes between three and seven days. On the other hand, for international payments, the use of digital currencies, and in particular bitcoin, is much faster and more secure.
Since the gold standard was abolished in 2008, the value of the dollar has fallen and the value of gold has risen by almost 2%. Gold is more valuable than similar metals such as copper because of its relative scarcity.
Bitcoin is designed to be as scarce as gold and difficult to obtain through the process of proof mining. However, bitcoin's advantage over gold is that it can be transmitted through communication channels.
Accumulation to the stream of gold is higher than all other metals, and accumulation to the stream of bitcoin will soon be equal to gold.