One of the most discussed subjects since the main criptomoneda got international recognition, it is about the correlation of Bitcoin with gold. Currently, the same importance is because of the same may depend on the movements of prices.
In a series of posts on the social network Twitter, the CEO of Euro Pacific Capital, Peter Schiff, said that for Bitcoin things do not go well in little time. At the same time, he said that those people who view Bitcoin as digital gold, you make a mistake.
But the opinions of Schiff seem not to be at all convincing, at least for the analyst of Bloomberg, Mike mcglone enjoy the festivities. This considers the correlation between Bitcoin and gold is extremely strong.
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Peter Schiff and the imminent collapse of Bitcoin for under $9,000
The relationship between Bitcoin and gold, according to Peter Schiff, is the reverse. In other words, while gold is revalued, the criptomoneda will tend to depreciate. The price of both assets seem to be going through a phase of stagnation. The precious metal above $1,800 and the principal of the cryptocurrencies struggle to overcome the $9.000.
However, Schiff does not see viable a simultaneous return of both. On the contrary, considers that one rises at the expense of the fall of the other. To be certain this opinion, the price of Bitcoin does not take a long time to come down from the $9,000 per coin.
“It gives the impression that the gold is reducing the resistance just below the $1,800 time that the Bitcoin reduces its support just above the $9.000. I hope that both the resistance and the support to yield, with the rise of the gold price and the collapse of Bitcoin”.
Gold seems to be chipping away at resistance just below $1,800 while Bitcoin is simultaneously chipping away at support just above $9,000. I expected both resistance and support to give way, with #gold surging as #Bitcoin collapses. What do you think will happen?
— Peter Schiff (@PeterSchiff) July 5, 2020
Militant anti-Bitcoin and controversy
It is important to keep in mind that Peter Schiff is one of the strongest opponents of Bitcoin. In its place, he proposes that the gold is and will remain the only store of value of importance.
Their opinions, generally, have been a focus of controversy on the part of enthusiasts of the criptomoneda. For these, the correlation between Bitcoin and the gold goes far beyond the opinions of experts from the category of Peter Schiff. Some advocates of Bitcoin as “digital gold”, respond to Schiff with arguments simple investment.
So, for example, in a past message on Twitter on June 30, the analyst was made in a question, that an ounce of gold in short it would be the same as a Bitcoin. Among the hundreds of responses, one user commented:
“If I had bought gold in 2012, priced at $1,900, today, in 2020, would still have the same $200 (what loss?). But if you would have bought Bitcoin in 2012 to $50, now I would have over $8,000. Oh, with Bitcoin you can buy things, can you do the same thing with gold? Besides, can’t you forge the gold?”.
How long do you think it will take before the price of an ounce of #gold is higher than the price of one #Bitcoin?
— Peter Schiff (@PeterSchiff) June 30, 2020
A strong correlation between gold and Bitcoin
As already said, other analysts such as Mike mcglone enjoy the festivities, do not believe that the price of Bitcoin must necessarily sink as a result of the increase in gold. According to him, the correlation between the two is becoming more and more narrow:
“The same forces that are driving the gold, give support to the Bitcoin”, explains in the analyst Bloomberg quoted by the portal Bitcoinist. In the same way, you should draw up a report of Coin Metrics, which is explained by the other news portal Decrypt, in which we analysed all the details of the correlation between Bitcoin and gold since the outbreak of the pandemic.
The possible correlation between Bitcoin and gold, could be a factor to be taken into account to predict the movement of prices of the criptomoneda. Source: Tradingview.com
The correlation between the two, they explained, is highly strong. The same that has been strengthened since the beginning of the spread of the COVID-19 large-scale. Since then, the behavior of both Bitcoin as gold has been extremely similar.
In that sense, the opinion of mcglone enjoy the festivities is diametrically opposite to the one held by Peter Schiff and a large part of the evidence seem to support it. Even so, the latter has a long tradition of business and predictions prove to be successful in commercial matters, so that their analysis cannot be dismissed lightly as a matter of simple controversy.
Data to be taken into consideration
At the beginning of the pandemic COVID-19 the price of Bitcoin dropped at the same time as the gold.The recovery of both assets to their state prior to the announcement of the pandemic by WHO, occurred more quickly in Bitcoin.Among the factors that helped the rapid recovery of the criptomoneda, was the expectation for the Halving, and the unrest in the united States.Currently, the two assets have their price locked in to $1,800 gold and $9,000 to the Bitcoin.The annual performance of Bitcoin exceeded in 100% of the gold in the first six months of the year 2020.
Reliable sources
The information of this content has been taken from reliable sources which are detailed below.
1-professional Management of content by the authors of CriptoTendencia.
2-external Sources: bitcoinist.com, Tradingview.com and decrypt.com.