Bitcoin Breaks $51K, German Analyst Says ‘Looks As if Bitcoin Is Eating Gold’

jenny1130

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Quote from: januszzbych on February 20, 2021, 09:11:02 AM

It`s funny because gold was always worth something and exist physically and bitcoin is nothing Wink

at some point someone will say that it is an example of wasted energy and computing power Sad and then normal people like as lose their invested savings and those who get rich on time will get out of it. Every cryptocurrency simply a domino effect, the question is whether it will be this or next year...

Following Tesla, Microstrategy, Bank of New York Mellon, Mastercard, PayPal, Morgan Stanley and many other companies, it seems that the domino journey has just begun.

famososMuertos

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The tendency of traditional analysts to prioritize their analysis in reference to the price of bitcoin based on traditional thoughts always lead them to this type of class comparison, bitcoin is not eating gold to reach ATH it is eating "oranges"...

Now the "dessert" that this user comment us in the OP Huh

/ You must cite the source even if you bring an idea in your own words.

jenny1130

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Due to quantitative easing and the printing of US dollars, this is asset inflation.
Unless the Fed tries to withdraw large amounts of money from the system to save dollars in the long term, real estate and stock markets will not fall. (But this is extremely unlikely)
Too much money at the top.
If they all buy BTC in U.S. dollars, the money still exists. Someone is selling these bitcoins. Therefore, it will be reused for other value assets such as real estate and stock markets.
In fact, the Fed will again increase its quantitative easing policy in the next market downturn.
Everything will continue to rise until the dollar plummets.

januszzbych

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It`s funny because gold was always worth something and exist physically and bitcoin is nothing Wink

at some point someone will say that it is an example of wasted energy and computing power Sad and then normal people like as lose their invested savings and those who get rich on time will get out of it. Every cryptocurrency simply a domino effect, the question is whether it will be this or next year...

Coyster

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Quote from: Leviathan.007 on February 18, 2021, 03:50:39 AM

I do remember when the price was nearly 40K so many people were saying it's the bubble and they were waiting for the price to fall and give them a change to buy, now it's it's above 50K and still some people don't believe how the price is rising. In less than 12 months ago, bitcoin was less than 4K and just imagine how much profit they could take out if it by investing even a little amount of money.

Of course people will always pass up the opportunity to accumulate BTC when the price is somewhat cheap, that's cause such people do not believe in the BTC network, and they are concerned they would lose funds investing in BTC, the only convincing factor for such individuals is a sporadic appreciation in the price of Bitcoin, something similar to what we're seeing at the moment.

Quite a lot of my friends I personally know and have talked to about Bitcoin, only woke up their interest when the Bull run started, such Investors can be called 'get rich quick investors', it's a poor decision to join the network cause of your FOMO. Having said that, I know gold is prolly more of a safe haven asset that BTC, but tbh, I think with the latest influx of institutional Investors, the sharp plunge Bitcoin experiences could stop, and Bitcoin will gradually start being more of a safe haven asset, and thus people will trust the network more.

dansus021

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i just wanna saying bitcoin is almost reach $60K, but gold for me is still choice for investment "and little bit stable than bitcoin"

DapanasFruit

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There is no question that Bitcoin is going to be gobbling the real gold and this is because more and more institutional funds are coming in and which resulted in part to the waking up of the retail investors anywhere. Soon there can be a convergence of these two factors working so good for Bitcoin. While gold will always remain to be the best and one of the most stable store of value, the interest of many investors and traders are right now on cryptocurrency so many are leaving gold for the opportunity to make hot and fast cash in here. Nothing is surprising in here.

Sithara007

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I am holding some gold ETF and the value is down by almost 20% in the last few weeks. In India, the government reduced excise duty from 12% to 7%, and that also resulted in the prices going down. Investors are confused now. They were hoping that gold would act as a store of value and protect from the crazy stimulus induced inflation. But that is not working for them right now. At a time when everyone was expecting the prices to go up, they are actually going down. And that too, by a lot.

jenny1130

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Quote from: Rruchi man on February 17, 2021, 01:28:57 PM

With the value of one kilo of gold at 57.6k dollars with not so high a liquidity, and the new ATH of btc at above 51k dollars and rising rapidly, the quote from the german analyst -"looks as if btc is eating gold", makes a lot of sense. In no time at all, we will be witnessing a complete overun in the value of gold by the valie of btc.

Bitcoin is faster and more convenient than gold, but the "speed of light" can be reached

TravelMug

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Quote from: btc_angela on February 19, 2021, 04:38:20 PM

Meaning that gold bugs are switching to bitcoin? Gold though is a $10 trillion market cap and bitcoin about $1 trillion so that's a huge difference so I don't think that "Bitcoin is eating Gold" as this point. Although for bitcoin to continue to rally to 6 digits, we need more people to invest on it and maybe if we could get some of them it will be good.

But we all know that majority of gold investors are old and traditional fart so I don't know if bitcoin will sit well on them as a hedge and store of value.

It's a hard sell for gold investors, I mean they have been in gold for many years because it has been proven a good hedge, i.e the last great war (WWII). Most countries involved uses gold that time to settle issues like debt to one another. Bitcoin hasn't been tested like that, so the ball is still on our side (and I'm not wishing war just to see bitcoin's store of value argument).

jenny1130

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Quote from: Leviathan.007 on February 18, 2021, 03:50:39 AM

I do remember when the price was nearly 40K so many people were saying it's the bubble and they were waiting for the price to fall and give them a change to buy, now it's it's above 50K and still some people don't believe how the price is rising. In less than 12 months ago, bitcoin was less than 4K and just imagine how much profit they could take out if it by investing even a little amount of money. However, I still believe bitcoin can rise even more because there is even more interest to it in the work and more companies are investing on it.

Gold has little to do with inflation. It has a good correlation with real interest rates. Gold may fall due to rising interest rates (for example, the US 30-year Treasury bond has risen by more than 20% year-to-date).
Bitcoin may be more similar to growth stocks. Because of FOMO and belief in its long-term prospects (actually the entire crypto industry), people seem to join in. BTC does not pay any interest, so if it is not viewed as a growth story, it will have the same limited utility as gold. The day it becomes a stable holding of value (for example, it does not fluctuate wildly in double digits every month) is the day it becomes boring like gold.

Twinkledoe

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Quote from: btc_angela on February 19, 2021, 04:38:20 PM

Meaning that gold bugs are switching to bitcoin? Gold though is a $10 trillion market cap and bitcoin about $1 trillion so that's a huge difference so I don't think that "Bitcoin is eating Gold" as this point. Although for bitcoin to continue to rally to 6 digits, we need more people to invest on it and maybe if we could get some of them it will be good.

But we all know that majority of gold investors are old and traditional fart so I don't know if bitcoin will sit well on them as a hedge and store of value.

Most of these traditional investors will still prefer gold over bitcoin. Gold has a stable value and they can sleep at night without worrying that their asset has gone down fast. Bitcoin is a very risky investment, so if you want a peaceful life, you will choose gold. However, for those risk takers, they will venture in crypto. And gold, being a tangible asset has also other applications especially in the electronics industry. How can you mine a bitcoin if you don't have those equipment with gold in it? Tongue

btc_angela

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Meaning that gold bugs are switching to bitcoin? Gold though is a $10 trillion market cap and bitcoin about $1 trillion so that's a huge difference so I don't think that "Bitcoin is eating Gold" as this point. Although for bitcoin to continue to rally to 6 digits, we need more people to invest on it and maybe if we could get some of them it will be good.

But we all know that majority of gold investors are old and traditional fart so I don't know if bitcoin will sit well on them as a hedge and store of value.

jenny1130

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Quote from: LittleBitFunny on February 17, 2021, 02:22:01 PM

Quote from: Phil_S on February 17, 2021, 12:56:53 AM

https://i.imgur.com/q6EfEfq.png

Fantastic graph,
People used to say that Bitcoin is very volatile, they were afraid to invest in Bitcoin, they thought that if the price of Bitcoin goes up it can go up to $20K! It was very hard for them to think that bitcoin's price can go over $20K. They didn't want to accept Bitcoin as a safe haven.

Today we have come close to the price of gold by proving everyone's idea wrong. Now if we compare with BTC and Gold then Bitcoin is more transparent and safe than Gold, Bitcoin's rarity is greater than Gold's, the legality of Bitcoin is much more than Gold cause you can't corrupt it, steal it easily. Bitcoin's liquidity is much higher and easier than Gold's.

I think they are right, Bitcoin started to eat gold. But I also think that I underestimated the stock market and the real estate market, and I was trapped just to find a reserve of value.

Maybe Bitcoin can depreciate real estate and the stock market by 80%. may be.

Leviathan.007

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I do remember when the price was nearly 40K so many people were saying it's the bubble and they were waiting for the price to fall and give them a change to buy, now it's it's above 50K and still some people don't believe how the price is rising. In less than 12 months ago, bitcoin was less than 4K and just imagine how much profit they could take out if it by investing even a little amount of money. However, I still believe bitcoin can rise even more because there is even more interest to it in the work and more companies are investing on it.

Willitivity

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It feels good to watch btc break through those limits and resistances like it's nothing. Who would have thought we will see $52K being traded in the market? I know people expected it to go up but not to these heights. A lot might still be uncertain with the market now however I do have a feeling that we are in for a long ride and all is not over here. Expect more upside movements in the near future. $50K is now the new support zone and next resistances are $55k to $60K.

jenny1130

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The latest analysis of the on-chain market intelligence startup Glassnode shows: "There are now more than 94,000 #Bitcoin addresses holding at least $1 million in BTC.

jenny1130

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Tesla's recent $1.5 billion investment in Bitcoin was used as a treasury reserve asset, which further legitimized the narrative of inflation hedging and Bitcoin's "store of value" use case. Doing so makes it more likely for other companies to follow suit, because one of the most successful entrepreneurs and innovative companies in the world made such a high-profile commitment to Bitcoin

Poker Player

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It's just broken $52.

I love how these threads get old soon. Wink

stomachgrowls

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Quote from: jenny1130 on February 17, 2021, 12:12:47 PM

Around one hour before the Bitcoin price broke through the $51,000 level, Ki Young Ju, the CEO of South Korean blockchain analytics startup CryptoQuant, pointed that the “Coinbase Premium Index” had gone positive again, which is a bullish indicator. According to CryptoQuant, the higher the gap between the Coinbase price for Bitcoin (BTC-USD) and the Binance price for Bitcoin (BTC-USDT), the higher the premium, and thereby the stronger the spot buying pressure from Coinbase (which is the exchange most popular with investors in the U.S.).

You should put up links on where you do snip out these sentences for you to avoid plagiarism problems and might get banned.
https://www.cryptoglobe.com/latest/2021/02/bitcoin-breaks-51k-german-analyst-says-looks-as-if-bitcoin-is-eating-gold/

Dont know why these people do really love to compare Bitcoin to Gold.They're both different things and shouldnt be correlated.
About those Coinbase premium index if it does show that buying pressure then thats really a nice thing to know.

Topic: Bitcoin Breaks $51K, German Analyst Says ‘Looks As if Bitcoin Is Eating Gold’ (Read 273 times)