Bitcoin buys more gold than ever with one ounce now costing under 0.035 BTC

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Bitcoin (BTC) is worth more gold today than ever before in its history as the largest cryptocurrency surpasses $ 50,000.

Data posted by market commentator Holger Zschaepitz on February 17th confirm that an ounce of gold now only buys 0.0352 BTC.

XAU / BTC is exploring new depths

Since hitting new all-time highs on Wednesday, the price of gold has gotten even cheaper in Bitcoin terms. An ounce was priced at $ 1,794, or 0.0349 BTC at the time of writing.

“Bitcoin eats gold on a chart!” Zschaepitz explained in comments.

Gold price in bitcoin. Source: Holger Zschaepitz / Twitter / Bloomberg

In response, the Analytics account Ecoinometrics added that gold’s underperformance against Bitcoin simply increases when longer time periods are taken into account.

The one-year risk-adjusted returns on Bitcoin were over 270%, compared to 24% for gold on December 28, 2020. The four-year returns are even more contrasting at 2,675%, versus 64% for Bitcoin and gold, respectively.

“When you look at Bitcoin vs. Gold, don’t zoom out too much or gold will become the horizontal axis,” commented Ecoinometrics on the accompanying diagrams.

Comparing the risk-adjusted returns of Bitcoin and Gold. Source: Ecoinometrics / Twitter

Schiff holds out against a flood of Bitcoin profits

Despite the numbers, gold bugs continue to put Bitcoin against the precious metal and forecast catastrophic consequences for those who hold BTC, as the correlation between the two assets has decreased noticeably since September 2020.

Bitcoin rolls 90-day correlation against Gold, VIX, USD, S & P500. Source: Digital Assets Data

Among them is Peter Schiff, who on his latest Twitter spat with proponents like his son, Bitcoin hodler Spencer Schiff, that BTC / USD is destined to go to zero.

When asked if the Bitcoin Foundation founder Charlie Shrem’s process would take thousands of years or more, Schiff replied that it should be much sooner.

“Serious answer – I doubt it will take anywhere near that long,” he claimed.

“But there may still be a bid in #Bitcoin for years after it has dropped to near zero. So who knows how many more it will take for this bid to go completely?”

A $ 1 million Bitcoin is “highly unlikely”.

Spencer then reminded him of a prediction he made last June in which Schiff claimed that Bitcoin was “highly unlikely” to hit $ 50,000.