Bitcoin price hit another all-time high on Friday, this time against gold, which is further confirmation that the demand for digital assets is rising.
When Bitcoin (BTC) topped $ 29,000 on Friday, the digital currency hit a high of 15.40 gold ounces, according to MarketWatch data, beating the previous high of December 2017.
Bitcoin priced in gold bars via MarketWatch
According to U.Today, the bitcoin gold rate peaked at 15.62 ounces early this morning.
2020 was a turning point for Bitcoin as the introduction of institutions helped catalyze a bull market unlike anything we’ve seen in its 11 year history. Bitcoin, the largest cryptocurrency by market capitalization, saw a massive increase of around 300% in 2020.
Gold also saw impressive gains over the year, though pale compared to Bitcoin’s meteoric rise. The spot price of the yellow metal ended the year up 25%.
Bitcoin’s biggest proponents believe the digital currency will degrade gold’s market cap as investors opt for efficiency, portability, and proven wealth scarcity. Amazingly, this view is also shared by JPMorgan Chase analysts, who believe that Bitcoin’s digital gold narrative is pulling capital away from precious metals.
Some believe that bitcoin’s supply shortage could drive prices higher during the course of 2021. As Cointelegraph recently reported, digital asset manager Grayscale bought almost three times the BTC it mined in December. Demand from PayPal, Cash App and others has also contributed to an apparent supply shortage of BTC.