Despite the continued downward trend, the world’s most popular digital currency, by market capitalization has had a larger transaction volume than gold since the second quarter of 2017. Twitter user Kevin Rooke released a statistic comparing average dollar transactions of bitcoin in gold.
For the year 2018 :
- Bitcoin is expected to settle $1.1 trillion.
- Gold is expected to settle $0.4 trillion.
Interestingly, this is not a one-time event. Since the second quarter of 2017, larger amounts have been transferred to it than to gold especially after the all-time high from December 2017 to January 2018 that may not be too surprising. It is noteworthy, however, that this trend continues and that Bitcoin handles larger sums than gold despite the Bitcoin crash. In less than a decade, it has shown that it provides more benefits in the digital age than the precious metal that has been a valuable investment for thousands of years.
Comparisons with The Real World
This is not the first time gold has been compared to the world’s largest digital currency. Pepper Capital Partner John Pepper said in April of this year that it is the first viable replacement for gold.
The well-known Winklevoss twins also commented on the topic at the end of 2017:
“We believe Bitcoin is destroying the gold. We think that looking at the properties of money gold is better . And what makes gold [so valuable]? The scarcity. It has a fixed upper limit, which makes Bitcoin [scarce]. It is easier to transport, it is fungible, it is equal to a better gold on the whole line.”
Bitcoin versus gold is a popular comparison. The VanEck / MVIS director said it could increase significantly in price should it only reach a few percents of the market capitalization of gold. Gold market capitalization is estimated at approximately 5.482 billion ounces, or $7 trillion.