Bitcoin vs. Gold: Why Gold May Maintain Its Long-Term Edge

• Analyst believes Bitcoin’s rapid growth may not surpass gold’s steady 8% annual growth.
• Despite Bitcoin’s rise, gold’s stability and history keep it ahead in the race for value.
• BTC could close the gap with gold in decades, but gold remains the “quieter older sibling.

Sharing his perspective on whether Bitcoin could surpass gold or not, Jurrien Timmer, a market strategist, stated that it is unlikely in the near future. Further, he discussed how gold’s long-standing growth could keep it ahead, even as Bitcoin continues gains attention as a digital asset.

Gold’s Historical Growth Rate

Timmer believes that the gold will increase in the same proportion as it has done since 1970 at a rate of 8% per year. Based on this, for Bitcoin to meet up, it would have to follow the power law curve or the internet S-curve model. These models imply that within the next decade or two, Bitcoin could grow at a fast rate to be equivalent to gold.

However, Timmer pinpoints the fact that in this case, if Bitcoin rises at such a high rate, gold may increase too, keeping Bitcoin below the growth rate while gold would appreciate more than its average 8% per annum. Timmer has predicted this as a possibility that, while Bitcoin may increase, gold will always maintain a superior level in the long run.

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Gold as Bitcoin’s Sibling

Timmer nicknamed gold as Bitcoin’s “quieter older sibling,” a stable, reliable asset that has stood the test of time. He also noted that Bitcoin is still in its infancy while gold is an older asset. While Bitcoin is steadily growing in popularity, it cannot be compared to gold, which has been valued for a longer period, thus exhibiting stable performance.

However, he opined that Bitcoin will face hurdles to achieve an equivalent worth of gold. He stated that even though it is likely that the value of Bitcoin increases, it will not be able to replace gold in the future. This is pinpointed to gold’s historical stability and its continuous growth in value, implying that gold will be higher than Bitcoin. 

Further, as long as Bitcoin remains, its relation to gold will always be a point of discussion. Timmer stated that gold will continue to be Bitcoin’s less glamorous and more traditional counterpart. The development of both assets will be observed, however, Bitcoin’s growth rate raises speculations of its potential growth against gold in the future. 

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