Considering the devaluation of the US dollar, gold has not yet reached the historic high it set in 1980.
Bitcoin skeptic Peter Schiff was only 17 when the yellow metal set its true historical high. Meanwhile, Bitcoin Bank a much younger asset, is close to its historical high adjusted for inflation after only three years of downward pressure.
The Bitcoin Identity Crisis – Asset or Currency?
Gold reached a price of USD 678 in 1980, according to an analysis by Visual Capitalist. Taking inflation into account, based on Officialdata.org calculations, USD 678 in 1980 had the same purchasing power as approximately USD 2,142 today.
The precious metal technically surpassed its historical peak in US dollars this year, reaching USD 2,075, according to TradingView data. However, its 1980 purchasing power record remains intact. Since reaching USD 2,075 last August, the price of gold has fallen, standing at close to USD 1,778 per ounce by the time this article is published.
Bitcoin Price Plummets at Kraken after Historic Peak
Bitcoin reached its last historical high in 2017, reaching USD 19,891.99, according to the Coinbase price index. Taking inflation into account, Bitcoin’s all-time high is $21,131.02 in value terms, as shown on Officialdata.org.
Gold has stood the test of time as a store of value, experiencing price discovery in every era, as people determine the value of the precious commodity through buying and selling. However, the game has potentially changed with BTC, which is similar to a digital version of gold, a commodity with a scarce supply used to store value. Bitcoin has fewer limitations to its storage and transaction, and also maintains a limited supply already defined.
Economist Schiff has pitted gold against BTC on several occasions, often undercutting Bitcoin’s value. While the price of gold moves slowly compared to Bitcoin, Schiff prefers gold for its role in storing wealth.
Bloomberg presents 5 upward trends for Bitcoin’s price despite the ‚Thanksgiving meltdown
Bitcoin has experienced a dramatic price hike in the last few weeks, coming in at just $100 from its Coinbase all-time high. Raoul Pal, a macro investor, recently stated his intention to sell all his gold reserves and buy more BTC.
„I have a sell order tomorrow to sell all my gold and climb up to buy BTC and ETH (80/20),“ he tweeted on November 29th. „I have nothing else (except some bond options and a few dollars),“ he said, adding, „98% of my net worth is liquid. See, you can’t categorize me except for #irresponsiblylong.
Tyler Winklevoss told CNBC that „cash is trash“
In the midst of Bitcoin’s upward trend, people are apparently coming out of gold en masse, as seen in recent record-breaking exit figures.