Ever since Bitcoin smashed through the US$1,000 barrier, people have been wondering if its value can surpass gold. To be more precise, if one Bitcoin can be worth as much, or more, as one troy oz of gold. Right now, it seems the gap is closing rapidly, even though the gold price is on the rise slightly over the past few days.
Gold Price Climbs In January of 2017
People who have been keeping an eye on the gold charts may have noticed the price per troy ounce has been going up slightly. One ounce of gold is worth US$1,177 right now, whereas one Bitcoin is valued at US$1,1113. It is evident for everyone to see this gap is closing a lot quicker than people anticipated just a week or two ago.
Things have been looking good for the gold price in general, though. During November and early December of 2016, the price per ounce of gold dropped from US$1,215 all the way to US$1,130. But ever since December 15th, prices have been going up again steadily, despite a minor setback around the Christmas period. Particularly the last few days have created an upward trend, with the value increasing from US$1,140 to where we are today. A positive trend for bullion holders, but Bitcoin is closing the gap quickly.
Everyone has heard about the spectacular price growth Bitcoin has gone through in 2016 and early 2017. The cryptocurrency was trading at much lower prices a year ago and gained 250% in value ever since. Moreover, this has brought Bitcoin and the gold price per ounce in close proximity of one another. But Bitcoin is not overtaking gold just yet, even though it got very close a few hours ago.
Speculators predict gold and Bitcoin will reach parity in the coming days, which would create a very intriguing ecosystem all of a sudden. When looking at the BT value in the Chinese market, Bitcoin has effectively surpassed gold already. But the rest of the world are always well behind the prices in China, making it a rather unfavorable measuring stick for these types of comparisons.
Bitcoin and gold share some traits which make either option quite appealing to investors. Scarcity and global availability make both assets valuable. But Bitcoin is a currency designed to be used in transactions on a daily basis, whereas gold is an investment vehicle. Moreover, it is incredibly difficult to pay for anything with gold these days. Bitcoin is more convenient to use, even though it is only accepted by a fraction of merchants worldwide.
Header image courtesy of Shutterstock