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Gold Bugs should be disappointed that 10 year ROI on Gold is negative
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.
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.
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 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$, when 10 years ago the gold price was 1860$!!
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.
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