According to U.Today, the ongoing debate about the rivalry between Bitcoin (BTC) and gold has taken a new turn. Legendary trader Peter Brandt recently shared his insights, stating that Bitcoin has outperformed gold over the past year. For centuries, gold has been a dominant hedge against inflation and a store of value. However, its efficiency as a store of value is being questioned with the emergence of Bitcoin.
While gold has shown a mild growth rate, Bitcoin has demonstrated a rapid and massive growth rate that surpasses gold on any simultaneous time frame. The BTC Gold Ratio chart, which represents the amount of gold required to buy one Bitcoin, has been steadily increasing over the past year. At the time of Brandt's post, the ratio was 29.91, up from around 20 at the start of the year. This indicates that more gold is now needed to buy the equivalent of one BTC.
Despite the relevance of gold, Bitcoin brings new technical and monetary advantages that make it a more economically viable option. Unlike gold, which has an unlimited supply, Bitcoin has a maximum supply of 21 million. The upcoming Bitcoin halving event in January will trigger a defined emission of BTC on a daily basis. These pseudo-deflationary features, along with the massive capital inflow from spot Bitcoin ETF products, are driving the price of the asset to new highs. At the time of writing, Bitcoin’s price is $70,040, down by 1.33% in 24 hours, while gold is priced at $2,354.16, down by 0.7% in the past 24 hours.