Bitcoin Versus Gold: Analyst Says The Yellow Metal Is A “Slow-Moving Rug Pull”

Bitcoin Versus Gold: Analyst Says The Yellow Metal Is A “Slow-Moving Rug Pull”

Taking to X on April 22, Willy Woo, an on-chain analyst, notes that the tides are turning in the age-old battle between gold and Bitcoin. While gold has enjoyed a 6,000-year reign as a scarce asset, advancements in mining technology have eroded its scarcity narrative, going by the accelerated production rate in the past few decades. 

Gold production | Source: Analyst on X

Gold Versus Bitcoin: Which Is A Better Store Of Value?

Meanwhile, Bitcoin’s supply is decreasing as gold risks an oversupply in the next few years. With the Halving event on April 20, the BTC’s scarcity is only set to become even more pronounced in the years to come. 

Since launching, the Bitcoin network has reduced daily issuance to miners through Halving. In the fifth epoch, the network rewards 3.125 BTC to every successful miner or mining pool every 10 minutes. This rate is down 50% from epoch four when rewards stood at 6.25 BTC per block.

Overall, Gold and Bitcoin are considered safe-haven assets. However, over the past centuries, the scarcity of gold has made it the preferred store of value assets for banks and countries. Nearly all central banks in the world hold gold in their reserves.

However, due to technological advancements increased production rate, Woo now thinks gold holders will face rough times in the coming years as new supply floods the market. 

Woo backs Bitcoin, a digital asset considered digital gold due to its predetermined and transparent issuance schedule. Traditional gold investors have failed to recognize that the yellow metal is a “slow-moving rug pull” playing out over the next decade, Woo says.

See also  BlockDAG Shuts Down Bitcoin Minetrix with V2 Whitepaper & $13.2M Presale while Optimism Coin Shows Potential

Is BTC Preparing For A Sharp Rally?

In another post on X, Woo argues that the Bitcoin Price ratio suggests that the coin is gearing for a mega run upward. The rally, the analyst continues, has not even started despite Bitcoin surging to as high as $73,800 in March 2024. 

Bitcoin price ratios | Source: Analyst on X

The spike in the coin’s valuation above the previous all-time high of $70,000 was a deviation from historical performance.

Even so, if history guides and prices surge even higher in the current epoch, a new all-time high will be recorded in alignment with Woo’s projections.

Bitcoin price trending upward on the daily chart | Source: BTCUSDT on Binance, TradingView

By analyzing how the Bitcoin Price ratio behaved relative to previous Halving events, Woo now thinks the current leg up will be a unique blend of solid market demand and dominance.

 

Leave a Reply

Your email address will not be published. Required fields are marked *