Bitcoin Versus Gold: Analyst Says The Yellow Metal Is A “Slow-Moving Rug Pull”

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On April 22, Willy Woo, an on-chain expert, pointed out that the longstanding competition between gold and Bitcoin is shifting. For over 6,000 years, gold has been considered a valuable asset due to its scarcity. However, advancements in mining technology have significantly increased production rates in recent decades, weakening its scarcity argument.

Bitcoin Versus Gold: Analyst Says The Yellow Metal Is A “Slow-Moving Rug Pull”

Gold Versus Bitcoin: Which Is A Better Store Of Value?

In the meantime, the amount of Bitcoins in circulation is reducing, while there’s a potential risk of an oversupply with gold within the next few years. Following the Halving event on April 20, the scarcity of Bitcoin is expected to increase further in the coming years.

After its introduction, Bitcoin’s network has decreased the daily reward given to miners during each Halving event. In the present phase, known as the fifth epoch, a miner or mining pool is granted approximately 3.125 Bitcoins for every successfully mined block, which occurs roughly every ten minutes. This represents a 50% reduction in rewards compared to the previous epoch when the reward was 6.25 Bitcoins per block.

In essence, both Gold and Bitcoin are regarded as protective investments. Nevertheless, due to its limited supply throughout history, Gold has become the go-to asset for safeguarding wealth by financial institutions and governments worldwide. Almost every central bank globally keeps Gold reserves.

Due to faster production rates brought about by technological advances, Woo now believes that gold investors may encounter challenging conditions in the near future as the market becomes oversupplied with new gold.

Woo endorses Bitcoin, which is often referred to as “digital gold” due to its set and publicized issuance plan. Contrary to common belief among traditional gold investors, Woo argues that the value of gold could be subject to a gradual but significant decrease in value over the next ten years, metaphorically described as a “slow-moving rug pull.”

Is BTC Preparing For A Sharp Rally?

In a previous post on X, Woo contends that the Bitcoin Price-to-Value ratio indicates it’s prepared for a significant price surge. Surprisingly, this bullish trend hasn’t begun yet, as Bitcoin reached an all-time high of $73,800 in March 2024.

Bitcoin Versus Gold: Analyst Says The Yellow Metal Is A “Slow-Moving Rug Pull”

An unexpected jump in the coin’s price beyond its prior record-high of $70,000 represented a departure from past trends.

In other words, if history repeats itself and prices continue to rise as predicted by Woo, we’ll see a new record-breaking high.

Bitcoin Versus Gold: Analyst Says The Yellow Metal Is A “Slow-Moving Rug Pull”

Based on his examination of past Bitcoin Price ratio trends during Halving occasions, Woo is of the opinion that the present price surge will represent a distinctive combination of robust market interest and supremacy.

 

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2024-04-23 06:11