Bitcoin has undergone a strong surge over the past few weeks, strongly outperforming gold. The price of the leading precious metal has actually dropped strongly over the past few weeks, underperforming the stock market and BTC massively.
Many think that it is Bitcoin that may be sucking the wind out of the sails of gold. In fact, a JPMorgan report published two weeks ago found that the inflows into Bitcoin vehicles such as Grayscale BTC Trust (GBTC) are actually seeing more inflows as the flows into gold taper off. More recently, data showed that there has actually been strong gold selling pressure.
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Bitcoin Is Becoming a Digital Gold Story, Says Wall Street Vet Novogratz
Mike Novogratz, CEO of Galaxy Digital, recently took to CNBC to say that Bitcoin is becoming a “digital gold story” as more institutional players enter the space after watching from the sideline for months and years.
Novogratz says that BTC would have rallied much earlier if there were easier ways to gain exposure to the coin.
"You're seeing more and more institutional pathways," says @Novogratz on #bitcoin's bull run. "It is a digital gold story." pic.twitter.com/PdXFW6NF0v
— Squawk Box (@SquawkCNBC) December 1, 2020
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Other Bulls Take to TV
Other prominent cryptocurrency bulls are taking to television to promote the cryptocurrency.
CNBC’s “Squawk Box” show recently brought on the Winklevoss Twins, bitcoin billionaires, to talk shop.
During the segment, the billionaires said that they think the leading cryptocurrency will surge 2,500% this market cycle to pass $500,000.
They said that they think this is the case because they see Bitcoin as fundamentally better than gold.
“BTC has already made significant ground on gold — going from whitepaper to over $200 billion in market capitalization in under a decade. Today, the market capitalization of above-ground gold is conservatively $9 trillion. If we are right about using a gold framework to value BTC, and BTC continues on this path, then the bull case scenario for BTC is that it is undervalued by a multiple of 45. Said differently, the price of bitcoin could appreciate 45x from where it is today, which means we could see a price of $500,000 U.S. dollars per bitcoin.”
A growing number of crypto and non-crypto investors are realizing that Bitcoin stands to benefit from a transition from gold to BTC.
Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin Is Becoming a Digital Gold Story: Mike Novogratz
