Bitcoin Breaks $51K, German Analyst Says ‘Looks As if Bitcoin Is Eating Gold’

[jenny1130]

Around one hour before the Bitcoin price broke through the $51,000 level, Ki Young Ju, the CEO of South Korean blockchain analytics startup CryptoQuant, pointed that the “Coinbase Premium Index” had gone positive again, which is a bullish indicator. According to CryptoQuant, the higher the gap between the Coinbase price for Bitcoin (BTC-USD) and the Binance price for Bitcoin (BTC-USDT), the higher the premium, and thereby the stronger the spot buying pressure from Coinbase (which is the exchange most popular with investors in the U.S.).

[jenny1130]

Dutch crypto analyst/trader Michaël van de Poppe said earlier today that now that Bitcoin has gone above $50K and is being hyped by mainstream media, traders and investors are happy to buy as much BTC as they can whereas they were no interested last March, when they could have BTC for as little as $5000 (or even less).

[Rruchi man]

With the value of one kilo of gold at 57.6k dollars with not so high a liquidity, and the new ATH of btc at above 51k dollars and rising rapidly, the quote from the german analyst -"looks as if btc is eating gold", makes a lot of sense. In no time at all, we will be witnessing a complete overun in the value of gold  by the valie of btc.

[aoluain]

Dutch crypto analyst/trader Michaël van de Poppe said earlier today that now that Bitcoin has gone above $50K and is being hyped by mainstream media, traders and investors are happy to buy as much BTC as they can whereas they were no interested last March, when they could have BTC for as little as $5000 (or even less).

Investors are now looking to Bitcoin because it is the only safe
store of wealth. This is because of the financial stimuli which
central banks have introduced because of the pandemic.

FIAT is devaluing, FIAT assets are falsely inflated because of
the endless printing of FIAT, its not sustainable

Investors see this so they have to move to Bitcoin, once the initial
few get in others will have to follow or be left holding their worthless FIAT.
They were not interested in March because it was just before
the first wave of Fiscal stimulus [money printing]

March 23rd 2020

The Fed’s Message: The Money-Printing Presses Are Fired Up and Ready to Go

[LittleBitFunny]

Fantastic graph,
People used to say that Bitcoin is very volatile, they were afraid to invest in Bitcoin, they thought that if the price of Bitcoin goes up it can go up to $20K! It was very hard for them to think that bitcoin's price can go over $20K. They didn't want to accept Bitcoin as a safe haven.

Today we have come close to the price of gold by proving everyone's idea wrong. Now if we compare with BTC and Gold then Bitcoin is more transparent and safe than Gold, Bitcoin's rarity is greater than Gold's, the legality of Bitcoin is much more than Gold cause you can't corrupt it, steal it easily. Bitcoin's liquidity is much higher and easier than Gold's.

[AGD]

I'm waiting for the part about the 'German Analyst' and the 'Eating Gold' thing that was promised in the title....

[Oshosondy]

I'm waiting for the part about the 'German Analyst' and the 'Eating Gold' thing that was promised in the title....

Only what people are assuming is that people are moving away from gold and going for bitcoin, this may not be accurate though but there can be some truth about it. Although the marketcap of gold is over 10 trillion, but if digital currencies do not exist, very possible some of the marketcap of bitcoin and many cryptocurrencies will be on gold, also there are people that supposed to invest in gold but because of cryptocurrencies, they did not but invest in cryptocurrencies. But if this is true, the effect of cryptocurrencies on gold will still be very minimal while gold still surpass all cryptocurrencies generally. Also before this can be said about, there should be analyses that will prove the shrinking of gold because of bitcoin, but there will be no valid analysis as of now because what bitcoin would have taken from gold will be very minimal if compared to marketcap of gold, it can not be more than 5%.

[stomachgrowls]

Around one hour before the Bitcoin price broke through the $51,000 level, Ki Young Ju, the CEO of South Korean blockchain analytics startup CryptoQuant, pointed that the “Coinbase Premium Index” had gone positive again, which is a bullish indicator. According to CryptoQuant, the higher the gap between the Coinbase price for Bitcoin (BTC-USD) and the Binance price for Bitcoin (BTC-USDT), the higher the premium, and thereby the stronger the spot buying pressure from Coinbase (which is the exchange most popular with investors in the U.S.).

You should put up links on where you do snip out these sentences for you to avoid plagiarism problems and might get banned.
https://www.cryptoglobe.com/latest/2021/02/bitcoin-breaks-51k-german-analyst-says-looks-as-if-bitcoin-is-eating-gold/

Dont know why these people do really love to compare Bitcoin to Gold.They're both different things and shouldnt be correlated.
About those Coinbase premium index if it does show that buying pressure then thats really a nice thing to know.

[Poker Player]

It's just broken $52.

I love how these threads get old soon. 

[jenny1130]

Tesla's recent $1.5 billion investment in Bitcoin was used as a treasury reserve asset, which further legitimized the narrative of inflation hedging and Bitcoin's "store of value" use case. Doing so makes it more likely for other companies to follow suit, because one of the most successful entrepreneurs and innovative companies in the world made such a high-profile commitment to Bitcoin

[jenny1130]

The latest analysis of the on-chain market intelligence startup Glassnode shows: "There are now more than 94,000 #Bitcoin addresses holding at least $1 million in BTC.

[Willitivity]

It feels good to watch btc break through those limits and resistances like it's nothing. Who would have thought we will see $52K being traded in the market? I know people expected it to go up but not to these heights. A lot might still be uncertain with the market now however I do have a feeling that we are in for a long ride and all is not over here. Expect more upside movements in the near future. $50K is now the new support zone and next resistances are $55k to $60K.

[Leviathan.007]

I do remember when the price was nearly 40K so many people were saying it's the bubble and they were waiting for the price to fall and give them a change to buy, now it's it's above 50K and still some people don't believe how the price is rising. In less than 12 months ago, bitcoin was less than 4K and just imagine how much profit they could take out if it by investing even a little amount of money. However, I still believe bitcoin can rise even more because there is even more interest to it in the work and more companies are investing on it.

[jenny1130]

https://i.imgur.com/q6EfEfq.png

Fantastic graph,
People used to say that Bitcoin is very volatile, they were afraid to invest in Bitcoin, they thought that if the price of Bitcoin goes up it can go up to $20K! It was very hard for them to think that bitcoin's price can go over $20K. They didn't want to accept Bitcoin as a safe haven.

Today we have come close to the price of gold by proving everyone's idea wrong. Now if we compare with BTC and Gold then Bitcoin is more transparent and safe than Gold, Bitcoin's rarity is greater than Gold's, the legality of Bitcoin is much more than Gold cause you can't corrupt it, steal it easily. Bitcoin's liquidity is much higher and easier than Gold's.

I think they are right, Bitcoin started to eat gold. But I also think that I underestimated the stock market and the real estate market, and I was trapped just to find a reserve of value.

Maybe Bitcoin can depreciate real estate and the stock market by 80%. may be.

[btc_angela]

Meaning that gold bugs are switching to bitcoin? Gold though is a $10 trillion market cap and bitcoin about $1 trillion so that's a huge difference so I don't think that "Bitcoin is eating Gold" as this point. Although for bitcoin to continue to rally to 6 digits, we need more people to invest on it and maybe if we could get some of them it will be good.

But we all know that majority of gold investors are old and traditional fart so I don't know if bitcoin will sit well on them as a hedge and store of value.

[Twinkledoe]

Meaning that gold bugs are switching to bitcoin? Gold though is a $10 trillion market cap and bitcoin about $1 trillion so that's a huge difference so I don't think that "Bitcoin is eating Gold" as this point. Although for bitcoin to continue to rally to 6 digits, we need more people to invest on it and maybe if we could get some of them it will be good.

But we all know that majority of gold investors are old and traditional fart so I don't know if bitcoin will sit well on them as a hedge and store of value.

Most of these traditional investors will still prefer gold over bitcoin. Gold has a stable value and they can sleep at night without worrying that their asset has gone down fast. Bitcoin is a very risky investment, so if you want a peaceful life, you will choose gold. However, for those risk takers, they will venture in crypto. And gold, being a tangible asset has also other applications especially in the electronics industry. How can you mine a bitcoin if you don't have those equipment with gold in it? 

[jenny1130]

I do remember when the price was nearly 40K so many people were saying it's the bubble and they were waiting for the price to fall and give them a change to buy, now it's it's above 50K and still some people don't believe how the price is rising. In less than 12 months ago, bitcoin was less than 4K and just imagine how much profit they could take out if it by investing even a little amount of money. However, I still believe bitcoin can rise even more because there is even more interest to it in the work and more companies are investing on it.

Gold has little to do with inflation. It has a good correlation with real interest rates. Gold may fall due to rising interest rates (for example, the US 30-year Treasury bond has risen by more than 20% year-to-date).
Bitcoin may be more similar to growth stocks. Because of FOMO and belief in its long-term prospects (actually the entire crypto industry), people seem to join in. BTC does not pay any interest, so if it is not viewed as a growth story, it will have the same limited utility as gold. The day it becomes a stable holding of value (for example, it does not fluctuate wildly in double digits every month) is the day it becomes boring like gold.

[TravelMug]

Meaning that gold bugs are switching to bitcoin? Gold though is a $10 trillion market cap and bitcoin about $1 trillion so that's a huge difference so I don't think that "Bitcoin is eating Gold" as this point. Although for bitcoin to continue to rally to 6 digits, we need more people to invest on it and maybe if we could get some of them it will be good.

But we all know that majority of gold investors are old and traditional fart so I don't know if bitcoin will sit well on them as a hedge and store of value.

It's a hard sell for gold investors, I mean they have been in gold for many years because it has been proven a good hedge, i.e the last great war (WWII). Most countries involved uses gold that time to settle issues like debt to one another. Bitcoin hasn't been tested like that, so the ball is still on our side (and I'm not wishing war just to see bitcoin's store of value argument).

[jenny1130]

With the value of one kilo of gold at 57.6k dollars with not so high a liquidity, and the new ATH of btc at above 51k dollars and rising rapidly, the quote from the german analyst -"looks as if btc is eating gold", makes a lot of sense. In no time at all, we will be witnessing a complete overun in the value of gold  by the valie of btc.

Bitcoin is faster and more convenient than gold, but the "speed of light" can be reached

[Sithara007]

I am holding some gold ETF and the value is down by almost 20% in the last few weeks. In India, the government reduced excise duty from 12% to 7%, and that also resulted in the prices going down. Investors are confused now. They were hoping that gold would act as a store of value and protect from the crazy stimulus induced inflation. But that is not working for them right now. At a time when everyone was expecting the prices to go up, they are actually going down. And that too, by a lot.