As a safe-haven asset, Bitcoin has been increasingly compared to gold, with many BTC bulls such as Tyler Winklevoss arguing in many ways that the largest cryptocurrency by market capitalization was better protection than gold.
Bitcoin to reach $500,000, beating gold
According to his Twitter, the Bitcoin billionaire Tyler Winklevoss once again touted Bitcoin’s horn.
He compared Bitcoin to gold and said that, in his own game, BTC was beating gold. The co-founder of The Gemini said:
â€œBitcoin is better at being gold than gold â€“ and not just incrementally, but by an order of magnitude or 10X better.â€
A study he wrote was then related to the Bitcoin billionaire. Bitcoin’s survey was put together by the Gemini co-founder, contrasting the hedge to other assets, such as oil, gold, and the US dollar.
Tyler Winklevoss also argued that the price of Bitcoin would eventually hit $500K on the market. He believed that, rather than gold, Bitcoin was also the preferred safe-haven asset among investors.
The philanthropist of “digital gold” had supported his claims and said earlier:
â€œBitcoin is ultimately the only long-term protection against inflation.â€
With the US dollar depreciating steadily due to mass printing from the US Federal Reserve’s efforts to offer COVID-19 relief, many investors have turned to Bitcoin to store their assets in this global economic downtrend.
Why is Bitcoin better than gold?
Gold was criticized for being difficult to store by Winklevoss. He also argued earlier that no one understood how much gold was in supply. Besides, if gold were to be mined from asteroids, as Elon Musk had announced he was working on doing, the price of gold would fall, and it would not be as expensive anymore.
On the other hand, Bitcoin would only still have a maximum of 21 billion supply, making the digital currency a scarce commodity and more expensive.
Bitcoin Price â€“ Will BTC maintain a level above $11k?
Bitcoin appears to be consolidating around the $10K mark when writing and taking a breather. Over the weekend, the “digital gold” cryptocurrency soared once again past the $11,000 mark but struggled to sustain a support level above that.
Bitcoin bulls have remained adamant that until Bitcoin crosses $11 K and holds a price above that, it will only be a matter of time. The indication seems to be that this would encourage other investors to shift to the safe-haven asset as institutional companies buy into Bitcoin.
The Bitcoin movement has also been pushed forward by renowned business investors, such as the Winklevoss twins and Paul Tudor Jones.
Bitcoin is trading a bit north of $10,400 on the market at the time of writing and has dropped by about 4% from yesterday’s price.