Will BTC change the market capitalization of physical gold?

Bitcoin is often treated as digital gold. Will the largest cryptocurrency change the market capitalization of physical gold?

The current market capitalization of Bitcoin is over $366 billion, while the market capitalization of gold is estimated to be over $11 trillion. The market capitalization of Bitcoin will have to grow more than 30 times to change the market capitalization of gold.

Font: Twitter

Bitcoin just made 3.32% progress on its journey to flip the shiny metal, according to a twitterbot which compares the exchange rate and market capitalization of Bitcoin and gold.

The digital gold?

Both Bitcoin and gold are used as a store of value and medium of exchange.

The precious metal has an additional use case in the form of jewelry. But the exact physical nature of gold makes it difficult to store and transfer. Bitcoin can be transferred faster because it has no physical limitations. Bitcoin also eliminates the need to involve a third party to proceedings.

bitcoin vs gold, gold, market cap

Also, only experts can check if a gold bar is authentic, while checking Bitcoin is just a few clicks on the internet. Due to these factors, the community believes that the flip is inevitable.

Bitcoin against gold: Is there no intrinsic value behind BTC?

Economist Peter Schiff believes that Bitcoin is not backed by anything that has intrinsic value. He said in a podcast:

“The truth is that the real success of Bitcoin is based on more people buying it. If you own it, you need a lot of your friends or colleagues to buy it because that’s the only way prices go up. Bitcoin is not an asset like real estate you can collect rent on, stocks you can collect a dividend on, or bonds you get paid interest on. … It’s not like a commodity that can actually be used for something, like oil to generate power. … It’s not like gold, where you can make jewelry with it or conduct electricity with it or use it in all sorts of industrial applications like other metals.”

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There are several counters to Peter Schiff’s anti-Bitcoin stance, most notably by Michael Saylor, who believes that Bitcoin is a product that provides utilitarian benefits. The MicroStrategy co-founder has made a bold statement that Bitcoin will surpass $100 trillion in market capitalization, surpassing the market capitalization of gold by a significant margin.

There are various perspectives offered by the Bitcoin community and the community with an anti-Bitcoin stance. Only time will tell which side wins the prediction game.

For the latest Bitcoin (BTC) analysis from BeInCrypto, click here

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