Ahead of the key bitcoin halving event, the so-called “Digital Gold” outshines real gold in performance. The popular digital currency has seen huge gains in the last few weeks as the block rewards halving event approaches. Currently the real gold is being restrained by insufficient supply.
Bitcoin is often seen as a digital version of gold because of its scarce supply and its admiration as a store of value. In addition to the main differences, there is another significant distinction between real gold and bitcoin: “digital gold” outshines real gold with the recent BTC price explosion. The price of gold has yet to explode.
“Digital Gold” surges 12% in seven days
As next week’s key bitcoin halving approaches, the price of bitcoin has surged by nearly 12% over the past seven days. BTC price revolved around $10,000 several times over the last two days before dropping to its present price at $9,600.
On the other hand, the price of gold also grew over the week, although not as the so-called “digital gold.” As per the Business Insider, the percentage growth was just a little over 1%, moving from $1,700 to $1,718 per ounce.
Moreover, the sheer distinction is even more crisp when looking back over the past one month. The growth in the price of gold has been gentle but steady. Gold amassed a little over 4% returns over the past one month. On the other hand, bitcoin rallied by a mammoth 34% within the same time-frame.
Both assets were affected by COVID-19 mid-March crash
During the March 12, both the “digital gold” and real gold were affected massively by the coronavirus-driven market collapse. Nevertheless, the price of real gold was not heavily affected compared to the massive dip in BTC price.; which was virtually slashed in half.
Currently, the two prized assets have recovered to their market valuation s before the mid-March crash. However, the elevated swing means that anybody who purchased the asset during the March dip, would have made 100% returns by now.