Even if Bitcoin Is The Rising Star, Gold Is Still King
Even if bitcoin – known to some as digital gold – is stealing the metal’s spotlight, one analyst points out that the cryptocurrency has a longs way to go before it catches up to bullion, at least in market cap.
In dollar terms, bitcoin has surpassed gold prices by a landslide, recently hitting an all-time high above $4,000; meanwhile, gold prices continue to hover near $1,300 an ounce.
However, if we look at the market cap of both these markets, gold is still king.
“It’s gold that could still mop the floor with bitcoin if we compare the two based on market cap,” wrote Sean Williams, a Motley Fool contributor since 2010, in a post Thursday.
“Despite its recent strength, this writer continues to believe that avoiding bitcoin is a smart move…We’ve witnessed numerous assets increase in value like this before throughout history, and practically every one wound up having its bubble burst eventually. My suspicion is bitcoin will be no different, and uninformed investors are going to be taken to the digital woodshed if they aren’t careful.”
Williams looked at data from Thomson Reuters GFMS and other sources to decipher just how much gold there is in order to determine the gold market’s market cap.