Bitcoin (Bitcoin) Supporters continue to make fun of the gold bug because the 10-year return of precious metals is negative.
As of Tuesday, the latest data shows that the trading price of XAU/USD has fallen 3.7% from the same day in 2011.
Gold failed to impress people-in any time frame
This is an Bad week For gold and its investors-Monday’s sharp decline consolidated losses for most of 2021.
At the time of writing, XAU/USD fell from US$1,941 at the beginning of the year to US$1,729-a year-to-date drop of 10.9%.
Although the previous long-term performance has saved gold from humiliation, as of this month, even a 10-year holding is a dubious investment. On August 1, 2011, the trading price of precious metals was US$1,830, an increase of 5.8%.
At the same time, in terms of dollar earnings, Bitcoin not only far surpassed gold, but also far surpassed all major commodities, and showed no signs of reversal, bringing gold any form of competitive advantage.
“One Bitcoin is now worth 21 ounces of gold. Poetic,” trading platform FTX Summarize last week.
Therefore, in BTC terms, as of Tuesday, gold looked weaker, only 0.038 BTC per ounce. Its historical low of 0.02746 BTC appeared when BTC/USD hit the current historical high of 64,500 USD in mid-April.
In other words, 1 BTC can now buy nearly 600 grams of gold.
“This is not digital gold!”
Perhaps unsurprisingly, members of the gold industry are among the few voices that publicly support precious metals, including Schiff Gold CEO Peter Schiff.
Notorious Bitcoin skeptics blamed the performance of gold on macro market factors, arguing that despite its success, Bitcoin will never be able to match it.
“As gold falls, bitcoin rises does not mean that it has replaced gold as an inflation hedge,” he said Counterattack this week.
“Gold fell because traders mistakenly believed that the Fed would successfully fight inflation by reducing quantitative easing and raising interest rates. Bitcoin is not traded like gold because it is not digital gold!”
His views run counter to the growing number of non-cryptocurrency voices this year, especially investment tycoons Ray Dario and Jerome Powell, Chairman of the Federal Reserve Board of the United States.However, the former recently stated that he will Choose gold More than BTC.