1 ounce of gold bullion priced in Bitcoin
Do you watch the gold:Bitcoin ratio? It has followed quite a striking pattern since Bitcoin first appeared:
In that graphic, each candle represents 1 month, and the price scale is logarithmic (to show patterns over large nominal changes).
At one time, it took 150,000 BTC to buy 1 troy ounce of gold. Today, it hit 0.025, meaning it takes 40 ounces of gold to buy one Bitcoin! Time between these extremes? 14 years. Imagine how much gold you'll get for 1 BTC in another 14 years?
Notice the overall shape of the curve...
Sharp downturns occur every 4 years, with another due to begin now. And indeed, just today, the ratio made a new all-time low. It's cheaper than ever before to buy gold bullion with Bitcoin, and likely due to get even cheaper over the next 10 months or so.
Been thinking about converting your crypto into something tangible like gold or silver coins and bars? Might be the right time to begin averaging in. At the very least, make sure you've got exit strategies in place.
Care to zoom in a bit? Here's the last 5 years of weekly candles, showing that we're in uncharted territory now:
Parity
In 2013, when 1 Bitcoin reached the price of 1 oz gold ($1240 USD), it bounced hard off resistance, and the bull market ended right then and there. I was watching when it happened, and uploaded a video about it:
It wasn't until 2017 - one halving cycle - that Bitcoin finally surpassed the price of gold. You can see it on the ratio chart:
It's funny. Many people believed "Bitcoin can never be worth more than gold because Bitcoin is digital nothingness and gold is something real!" I insisted that Bitcoin would surpass the price of 1 ounce of gold, and then continue onward toward $1million. A lot of people were quite disturbed, confused, and even angry about my predictions. In late 2013, for a while these people were correct! Bitcoin couldn't get above gold, possibly because of the psychological resistance level. But in 2017, that 1:1 parity was taken out, and we've never been anywhere near it since.
What's next?
It sure looks like the ratio is headed for about 0.01 sometime in 2025, going off the longterm pattern shown above. (1 BTC would buy 100 troy ounces of gold bullion.)
If gold continues to climb at a similar pace, it should be $3000+ next year. A ratio of 0.01 would then put the price of Bitcoin at 300,000 USD.
Have a look at the daily BTC chart right now:
Removing that daily candle where it hit a new all-time high and then flash-crashed, the trend becomes reeeeeally obvious:
Gold is going to keep going higher. But Bitcoin is going to go a LOT higher - soon. Strap in!
DRutter
