Recently, investors have turned their attention to the comparison of Bitcoin and gold market capitalizations amid the recent price surge in cryptocurrency.
Market Capitalization of Bitcoin and Gold
Currently, Bitcoin's market capitalization stands at $2.34 trillion, compared to $23.22 trillion for gold. This implies that Bitcoin reaches approximately 10.09% of gold's market capitalization.
Price Movements of Bitcoin and Gold
Analysis of price changes over recent years shows that Bitcoin has performed significantly stronger than gold:
* 5 years: BTC +892%, Gold +72% * 3 years: BTC +387%, Gold +95% * 2 years: BTC +304%, Gold +76% * 1 year: BTC +104%, Gold +36%
Since the beginning of the year, Bitcoin has returned 25.9%, while gold has returned 27.38%.
Supply Growth and its Impact
Bitcoin's annual supply growth (inflation) is 0.83%, while gold's is 1.72%. Bitcoin's halving, occurring approximately every four years, limits long-term supply growth. Conversely, gold's production is dependent on mining capacity and recycling rates.
The comparison of Bitcoin and gold indicates that cryptocurrency has the potential for further growth; however, a significant price increase is needed for it to dominate the market.
