Weekly Bitcoin vs Gold Analysis: Strong Gains for Both Assets

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CryptoMode Uphold Universal Gold Bitcoin vs Gold

There is a clear correlation between gold and Bitcoin where safe-haven assets are concerned. However, the internal ratio for Bitcoin vs Gold is clearly shifting in favor of BTC. This doesn’t invalidate gold as a solid investment, but it’s not one’s only option. 

Bitcoin vs Gold Ratio Today

It is always worthwhile to explore different investment vehicles and create a diversified portfolio. For some, such a portfolio includes precious metals, Others prefer owning Bitcoin or other cryptocurrencies. Both of these approaches are perfectly viable, and are not mutually exclusive by any means. That being said, it is only normal that one performs better than the other at certain times. 

Looking at the current Bitcoin vs Gold ratio, there is a clear trend visible. Bitcoin has dominated this ratio for several months now. Ever since July 25, gold has lost a lot of momentum in favor of Bitcoin. For cryptocurrency enthusiasts, this is excellent news. Gold bugs, on the other hand, should not despair just yet either. The value of the precious metal is still holding strong, all things considered. 

Source: TradingView

Although there is no “actual” Bitcoinv s Gold ratio, it is a possible metric on TradingView, among other platforms. This ongoing downtrend for the world’s leading precious metal is not entirely surprising. Bitcoin has gone through a big bull run in recent months, pushing its value well past $15,000. For gold, there has been a dip to $1,840, but that seems to be overcome once again.

Source: TradingView

The way things stand today, the Bitcoin vs Gold ratio sits at 0.12708. That means one can buy slightly under 8 ounces of gold for the value of 1 Bitcoin. Assuming both gold and Bitcoin will continue to rise in value, there may be some further changes where this ratio is concerned. It would not be impossible to see a small correction in favor of gold, although the difference will not be spectacular right away. 

Historical Bitcoin vs Gold Performance

One interesting site worth keeping tabs on is found on Woobull. It depicts the performance of $1 worth of Bitcoin or $1 worth of gold over the years. Regardless of when one bought, Bitcoin always comes out on top. This is primarily because it has a much higher profit potential than gold does currently. Unlike the precious metal, demand for Bitcoin never diminished greatly due to COVID-19. It’s not a “material”, but rather a vehicle to achieve financial freedom. 

Source: Woobull

What is even more remarkable is how both assets tend to generate a profit regardless of when one bought. An interesting addition to the Bitcoin vs Gold debate, yet it further confirms the strengths of both assets. There is no reason not to own either asset today, and having both in one’s portfolio might be the better option altogether. Our partners over at Vaultoro offer convenient trading between Bticoin and gold. 

Conclusion

Both Bitcoin and gold have shown ample strength in the past week. Fears over the US Presidential election outcome seemed unwarranted, yet the markets continue to note a solid performance regardless. Sustaining the uptrend will be the number one priority for the foreseeable future. 

As far as the Bitcoin vs Gold narrative is concerned, it will be interesting to see what happens next. Gold is likely to push back a bit in the internal ratio, but the overall momentum will not reverse course all of a sudden. Both assets seem poised for further incremental gains in the week to come. 


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