Profile image
By silveristhenew (Reporter)
Contributor profile | More stories
Story Views

Last Hour:
Last 24 Hours:

3/3/17: Gold vs Bitcoin: Prices vs Values

Friday, March 3, 2017 15:55
% of readers think this story is Fact. Add your two cents.

B4INREMOTE-aHR0cHM6Ly8zLmJwLmJsb2dzcG90LmNvbS8tZmtISG9aWmVGaFUvV0xoajdOX1ZDUkkvQUFBQUFBQUFjemsvdkRsNGRUYmcyOVlxSG5sZ0p2MEJBbVRkdDJlajV2dTdRQ0xjQi9zNDAwL01XLUZIMTcyX2dvbGRfYl8yMDE3MDMwMjEzMDA1OF9NRy5qcGc= / by Constantin Gurdgiev / Friday, March 3, 2017

Marketwatch reported earlier that Bitcoin is currently being priced at above the price of gold in USD terms:


The comparative is somewhat silly, because, as Marketwatch article notes, Bitcoin market cap is much much smaller than that for gold, which implies that any valuation of Bitcoin to-date incorporates a hefty liquidity risk premium compared to gold. In addition – unmentioned by the Marketwatch – Bitcoin lacks key financial properties of gold, including:

  1. Established safe haven properties: gold acts as a safe haven instrument against large scale or systemic risks. Bitcoin is yet to establish such property with any conviction. There are some indications that Bitcoin may be seen in the markets as a hedge against some systemic risks, e.g. capital controls in China, but this property is yet to be fully confirmed in data. Beyond such confirmation, there is no evidence to-date that Bitcoin acts as a safe haven for other systemic risks (e.g. sovereign debt crisis risks in the Euro area, or political risks in the EU, etc).


The post 3/3/17: Gold vs Bitcoin: Prices vs Values appeared first on Silver For The People.


We encourage you to Share our Reports, Analyses, Breaking News and Videos. Simply Click your Favorite Social Media Button and Share.

Report abuse


Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories



Top Global

Top Alternative



Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.