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Bitcoin's Potential Surge Against Gold and Analysis of Gold vs. BTC Inflation (Continued)

Jun 4, 2024

In the realm of Bitcoin and gold analysis, Peter Brandt stands as a pivotal figure, forecasting a potential 230% surge for Bitcoin against gold within the upcoming 12-18 months. Concurrently, Willy Woo offers insights into the inflation comparison between gold and Bitcoin.

Brandt's recent pronouncement through his X account highlights the persistent uptrend of Bitcoin against gold since Bitcoin's inception. He anticipates a period of fluctuation lasting 12 to 18 months, followed by a surge to requiring 100 ounces of GC to acquire a single Bitcoin.

The current BTC/GLD ratio, positioned at 29, denotes the need for 29 ounces of gold priced at $68,000 to obtain one Bitcoin. Brandt foresees this ratio tripling to 100 ounces post the consolidation phase of Bitcoin.

Brandt's enduring bullish stance on Bitcoin versus gold stems from Bitcoin's remarkable outperformance of the traditional safe-haven asset since its birth in 2009, marking an impressive gain exceeding 375,000% against gold.

Despite Bitcoin's substantial growth against gold, Brandt remains optimistic about its future potential. His BTC/GLD ratio chart depicts a prolonged uptrend showcasing ample room for Bitcoin to further surpass gold.

Delving into Gold Inflation versus Bitcoin Inflation

In the exploration of gold economics, Willy Woo underscores the mining progress dynamics, shedding light on the quantities mined relative to the untapped resources underground.

Woo's post on his X account unveils a chart detailing gold's mining progress in the face of advancing technology. With 213,000 metric tons mined to date and an estimated 149 billion tons remaining unexploited, Woo humorously comments, "we are still early."

Responding to queries about the chart's age, Woo clarifies its origin from OurWorldInData, not as a personal creation. Furthermore, he shares his chart showcasing percentage expansion over the past decade, extrapolated from the latest annual mining rate recorded in December 2023.

Woo's comparative chart juxtaposes gold inflation against BTC inflation, showcasing rates of 1.47% and 0.78% respectively. Bitcoin's inflation trajectory exhibits a noticeable deceleration compared to gold, currently representing half of gold's inflation rate.

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