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"Uncanny Pattern Resemblance"
Since the birth of Bitcoin a decade ago, many have likened this decentralized digital resource to gold, with the nickname of Satoshi as a form of "digital gold". This connection can be traced due to the fact that the two individual activities are both valuable, divisible, durable and secure.
Although there are similarities between the two assets that are as clear as the day, as recently indicated by Nunya Bizniz, a lesser-known cryptocurrant supporter, there may be a "disturbing" line that can be traced between the action of gold prices and its digital counterpart.
BTC vs Gold (both Log Scale) Uncanny pattern resemblance between Golds 43 years of graphical data and Bitcoin 9 years. pic.twitter.com/jtJ4qWqAFC
– Nunya Bizniz (@Pladizow) 6 September 2018
Thursday, Bizniz went on Twitter to bring up two separate charts, with the first being the history of 43-year prices of gold and the price action of BTC for the entire duration of its nine-year life. By putting the graphs (which are logarithmic / non-linear) side by side, it becomes clear that there are clear parallels, or as Bizniz says, "disturbing", even though the two value deposits may be inherently different in their core.
As seen in the image tweeted (above), the price action of both markets saw similar attacks of exponential increases and subsequent "cooldown", leading some to ask if BTC is following in the footsteps of Gold in some way.
In a tweet published a few days after the original, the user displayed an enlarged graph of the two resources to support the belief that they could be related. According to the tweet, if BTC really does follow the path of gold, this could mean that the price of the main cryptographic asset could fall below the level of support always so important of $ 5,800 in the coming months.
BTC vs Gold latest summit. BTC will follow the descending model of gold from here? BTC costs $ 5,755 the equivalent of $ 1,526.70 of gold? pic.twitter.com/Xxomif5jY5
– Nunya Bizniz (@Pladizow) 8 September 2018
However, as discussed by Ethereum World News, Gabor Gurbacs, director of digital assets strategy at VanEck / MVIS, he argues that BTC could be worth more than $ 20,000 if it can succeed in a role as a primary form of digital gold. Gurbacs explained his prediction, stating:
Investors refer to Bitcoin as a form of digital gold and gold today has about 7 trillion dollars in circulation. If you take, for example, 5 to 10 percent – I'll let everyone do the math – Bitcoin is on the upside. Bitcoin is used as digital gold today. It is a risky resource.
Apart from the correlation of postulated prices, there are many who think that Bitcoin is actually superior to gold, as it has certain functions that make it an attractive investment, although it is functionally better than the yellow metal that humans fell in love during the written history.
As previously reported by Ethereum World News, Lou Kerner, co-founder and partner of CryptoOracle, "the first crypto community-first VC," recently spoke with CNBC to reveal that Bitcoin can actually have an extra gold in certain areas. Speaking to CNBC's "The Coin Rush", which focuses on cryptocurrencies and blockchain technologies, Kerner noted:
Gold has emerged as a global reserve of value and has maintained that position for literally a couple of thousands of years – this is a fantastic race. So now we have something (Bitcoin) that we think can work much better. So we expect that over time – not in a day, not in a week, not even in 5 years, – for some people who use gold as a store of value to switch to Bitcoin.
While the crypto asset supporter did not mention any specific inconvenience of gold or the positive aspects of Bitcoin, one might assume that he sees ease of use, immutability and digital nature of Bitcoin as reasons why some direct thinkers would see value in the use of BTC. [19659017] Image courtesy of Michael Steinberg @ Pexels
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