Still, BTC (Bitcoin) beats gold as an investment in 2020. It is despite the precious metal generating its most significant returns in a decade.
Data shows that despite gold’s run this year, Bitcoin still trumps every macro asset in a knock to gold bugs when it comes to investment profits.
Bitcoin is quietly eating the financial world.
Bitcoin is up almost fifty percent in 2020, fresh off its second-best quarterly close on record. Meanwhile, gold has managed just half of that with 25.6%.
The S&P 500 is an index with which Bitcoin has shown a considerable correlation. It is just 5.5% higher than at the start of January. The United States dollar has netted savers only 2.2% year-to-date returns despite its increasing strength. Meanwhile, the oil is the big loser, with TWI crude down by almost thirty-five percent.
Willy Woo is a famous statistician. For him, zooming out to examine Bitcoin returns against gold since the cryptocurrency’s inception in 2009 compounds the case for holding Bitcoin.
The numbers are speaking for themselves. One dollar of Bitcoin purchased even one year ago would have netted its owner $0.31 profit. Meanwhile, gold would have got $0.27.
After reaching $20,000 all-time highs, when BTC/USD started consolidating, the differences are much more palpable before the end of 2017. One dollar invested five years ago is now worth $44.43. Meanwhile, according to Woo’s figures, one dollar of gold is worth $1.67.
Woo has stated that he believes Bitcoin will soon decouple from gold, as Cointelegraph reported. Moreover, Woo believes that other traditional markets will carve out a price trajectory of its own.
During the 2020’s market volatility, the cryptocurrency has weathered criticism from gold bugs as much as ever. Serial gold bug Peter Schiff is among its most vocal naysayers. In recent weeks, Schiff has toned down his skepticism, focusing on the state and the United States dollar of the country’s financial debt.