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Gold Bugs should be disappointed that 10 year ROI on Gold is negative

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3 months ago

Bitcoin has proved to be a richer asset than gold!!

Everybody knows Bitcoin is a rich and creamier asset than gold, it’s an asset that's more valuable than gold. Both these assets are seen as having similar characteristics which is why Bitcoin is considered digital gold.

Now before I proceed further, I like to tell you that although I get featured in these crypto blogs as Bitcoin Cat, my value is not pegged to Bitcoin. Ha!!

My value is pegged to other things that are abstract, but I hope in an abstract sense inside my Mother’s heart my value is more than BTC.

I am no investment asset, I am her pet cat and a real cat at that, not those pricey NFT cats in the Blockchain space.

 Bitcoin is called Digital gold because of the similarities it shares with the golden metal

Now back to BTC and the gold topic. They both are valuable due to certain features which they actually share

Both these assets are obtained through mining and are in limited supply. Therefore being scarce assets, whenever there is a spike in demand for these assets their price appreciates with their supply only getting more limited. They both are being talked about as an asset that is a good hedge against inflation.

 Disparity in the price performance - Bitcoin vs Gold, Bitcoin wins hands down

However, there is huge disparity in their price performance, with Bitcoin outperforming gold well and truly!!

Of course, it’s a competitive world where comparison is done with this vs that. Although I feel that it may be unfair to compare BTC prices with gold, because gold is an old asset that is matured in terms of market cap.

Hope you don't mind - play fight between me Garu vs Mochu since we talked about competition and the competitive spirit, however we do not represent Bitcoin or gold

However, BTC is a new asset class that has been experiencing exponential price appreciation because it has a lot of room to grow in terms of its adoption, that will result in further growth of its market cap and value.

Now, brace up for this report card of gold’s performance, it’s very poor compared to Bitcoin, whatever that Bitcoin sceptic, gold bug guy Peter Schiff says!!

 A Gold Hodler’s returns over a 10 year period is in the negative

A Gold investor’s investment returns on a 10 year period is in the negative, as gold is lesser in value to what it was 10 years ago with the current price of gold as of the time of writing being 1755$, when 10 years ago the gold price was 1860$!!

Chart drawn using Tradingview

Well… this individual performance of gold is disappointing enough but when you compare how BTC’s price has performed in the same 10 year period, it turns even more gravely disappointing!!

BTC’s price appreciation over the last 10 year period is about 1,84,3918% , and gold can never beat that!!

Here is a chart that shows that Gold has reached its All Time Lows in ratio to Bitcoin.

 Gold is still important to HODL as a hedge against currency inflation

Anyway on the fair side, Gold is a tested asset that has proved to be a hedge against currency inflation, that way this old asset Gold, is considered to be a known store of value compared to BTC, but BTC is proving its worth as of late.

 A very brief look at Gold’s price -

Chart drawn using Tradingview

Gold is facing resistance at its old All Time High prices of September 2011 at1925$ . In August, 2020, Gold managed to surpass its previous 2011 year All Time Highs but after that it corrected to 1050$ on Dec 2016. Since then the price of gold has picked up reaching its previous All Time Highs at August 2020 , where the price of gold went to $2088 surpassing its previous All Time Highs.

Since then, gold’s price has been falling but it finally looks to have bottomed and found support at 1678$, as prices found support at that price level three times.


Now, it looks likely that gold will climb up from here and attempt to break the ultimate resistance of its last All Time High price.

 Peter Schiff on Gold’s down performance compared to BTC and otherwise


Of course, you must hear what the famous gold bug Peter Schiff has to say on this -

“Gold is down as traders mistakingly think the Fed will successfully fight off inflation by tapering QE and raising interest rates. Bitcoin doesn’t trade like gold because it’s not digital gold!”

He still maintains his anti- Bitcoin stance -

“Bitcoin rising as gold falls doesn’t mean it’s replaced gold as an inflation hedge,”


Happy week end and advanced Caturday wishes to you all, just keep in mind that this article is not investment advise, it’s just for giving you guys some quality crypto entertainment.

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