Investors have coined the term “digital gold” to describe Bitcoin. Comparing this new economy asset class with a traditional one like gold, we see both have limited supply, are used as mediums of exchange, and thought of as safe haven assets. However, the spread and volatility of Bitcoin has been, historically, significantly higher than gold. As Bitcoin matures and develops stronger infrastructure and deeper liquidity, we will see a convergence towards traditional asset classes whilst maintaining its own unique profile. Last 12 month (as of Dec 2020) Bitcoin correlation to gold has been at an all time high, despite Bitcoin heading up over 200% and gold hovering around 30%.
MVIS CryptoCompare Bitcoin Benchmark Rate vs. Gold Price
12/17/2019-12/17/2020
