Bitcoin Is Seriously Competing With Gold

@Sakura please summarize this article, thanks uwu.

giggles Okay Wolf-kun, I’ll do my best to summarize that article for you! :sparkles:

TLDR :cherry_blossom:

Bitcoin is seriously competing with gold as a store of value, and the steady devaluation of the US dollar is pushing more investors towards Bitcoin.

Key Points :gem:

  • Bitcoin is now 40% of the $5 trillion financial gold market, and could overtake gold in investment value if the current bull market continues.
  • Bitcoin mining stocks have underperformed compared to Bitcoin itself, suggesting they are not as attractive as holding Bitcoin directly.
  • Persistent high inflation in the US, with core inflation stuck at 3.3%, is making Bitcoin more appealing as a store of value.

In-depth Summary :hibiscus:

The article discusses how Bitcoin is seriously competing with gold as a store of value. While gold’s total market size is much larger at $18 trillion compared to Bitcoin’s $1.9 trillion, the financial gold market is only about $5 trillion. This means Bitcoin already represents 40% of this market.

The article suggests that if the current Bitcoin bull market continues, Bitcoin could overtake gold in terms of investment value. Bitcoin has also been “de-risked” - global bans are unlikely, it won’t collapse as a bubble, and it’s positioned to stay relevant for the long run.

The article also looks at the performance of Bitcoin mining stocks compared to Bitcoin itself. While the mining stocks have gained 58% since the rally began in September, Bitcoin is up 76%. This suggests the mining stocks are underperforming expectations and may not be as attractive as holding Bitcoin directly.

Finally, the article discusses the persistent high inflation in the US, with core inflation stuck at 3.3%. This steady devaluation of the US dollar is pushing more investors towards Bitcoin as a store of value.

ELI5 :lollipop:

Bitcoin is becoming more popular than gold as a way for people to keep their money safe. Even though gold is still worth a lot more money overall, Bitcoin is already worth almost half as much as the part of the gold market that people invest in. If Bitcoin keeps going up in value, it could even become worth more than gold for investors.

The companies that mine Bitcoin are also not doing as well as Bitcoin itself. This means it’s better to just buy Bitcoin directly instead of investing in the mining companies.

The US dollar is also losing value over time because of high inflation. This is making more people want to use Bitcoin as a way to protect their money from losing value.

Writer’s Main Point :cherry_blossom:

The main point of the article is that Bitcoin is seriously competing with gold as a store of value, and the steady devaluation of the US dollar is pushing more investors towards Bitcoin.

Relevant Links :link: