GOLD BEGINS BREAKDOWN AGAINST BITCOIN, TRIGGERING 90% DECLINE ON PER OZ BASIS

[Donken]

GOLD BEGINS BREAKDOWN AGAINST BITCOIN, TRIGGERING 90% DECLINE ON PER OZ BASIS

Bitcoin price just set a new all-time high against the US dollar and other top global fiat currencies. But what might be even more significant, is the fact that the gold standard itself is breaking down against BTC after this latest rally.

The gold versus Bitcoin price chart shows that in the past, each time support broke down, the precious metal dropped 90% in value against BTC on a per ounce basis. Here’s a look at each 90% drop historically, and some insight as to why this is such a big deal for the emerging financial technology.

The precious metal once underpinned the entire monetary system, until the gold standard was disbanded in the early 1970s. At that time, gold traded at $30 an ounce.

Today, it trades at around $1,800 an ounce, showing what an incredible investment the scarce asset made over the last 50 years. It took well-known boomers like Paul Tudor Jones to begin comparing Bitcoin to gold in the 1970s and highlighting its rarity, that goldbugs began considering the cryptocurrency alternative.

Gold is archaic and in the post-pandemic, all-digital, and preferably decentralized world, Bitcoin is showing it is more valuable. A recent example where tonnes of gold was moved from a central bank in the Netherlands, requiring extensive planning, an armed guard transport, and costing millions. A BTC transaction could be done in a couple of clicks, and move that value without the cost, time, or effort associated with it.






Read more here