It has been almost a decade since Bitcoin at first stepped up into the global financial arena and despite the headwinds of potential it was immediately dubbed as a supernatural offspring of the darknet. Yet even the vigorous opposers of digital currency have to admit Bitcoin’s glaring similarity to the world’s most precious metal, namely gold.
Indeed, after careful consideration it becomes clear that these two assets have lots in common. Many analysts and enthusiasts in the industry draw connections between the inherent natures of gold and the digital currency citing durability, security and divisibility of the two individual assets. Moreover, gold as well as Bitcoin serve as a store of value enabling investors to hedge funds against losses.
Having in mind all these specific features, Tweeter user Nunya Bizniz decided to match historic price charts of gold and Bitcoin while the results of such comparative analysis will be a clue for the Bitcoin’s trading trend.
As soon as the research was completed, Bizniz shared his observations with Twitter community stressing an “uncanny” resemblance of the charts:
BTC vs Gold (Both Log Scale) Uncanny pattern resemblence between Golds 43 years of chart data and Bitcoins 9 years. pic.twitter.com/jtJ4qWqAFC
— Nunya Bizniz (@Pladizow) September 6, 2018
For the analysis Bizniz took two separate charts, with the first being gold’s 43-year price history and the BTC’s price action throughout the entirety of its nine-year lifespan. Putting the logarithmic charts side-by-side, it became apparent that there are clear parallels, or as Bizniz puts it, “uncanny,” even though the two stores of values may be inherently different at their core.
It could be seen that the price action of both markets have seen similar bouts of exponential increases and subsequent ‘cooldowns’, meaning Bitcoin is following in the footsteps of gold in some manner and if so the price of the foremost crypto asset could move under the ever so important $5,800 support level over the next few months. Such a prognosis disrupts all claims recently made by the industry celebrities calling for Bitcoin skyrocketed price.
However, Bitcoin’s high volatility along with the overall uncertainty established at the digital market seem to not waver cryptocurrency proponents who insist Bitcoin is the most first viable candidate to replace gold. Some even think that Bitcoin is actually superior to gold, as it has certain functions that make it an appealing investment including Bitcoin’s ease-of-use, immutability and digital nature.
Previously Coinspeaker reported co-founder of CryptoOracle, Lou Kerner saying Bitcoin is to dethrone gold in the near future. As a premise for the bold statement, Kerner mentioned Bitcoin’s exquisite functionality that is much better than gold.
He also said the process of gold replacement will take years, thus gold has emerged as the global store of value and it has held that position for literally a couple thousand years. It is also an uneasy task to convince those who are hesitant to change that cryptocurrencies underpinned by the robust blockchain technology are the next big thing.