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MrSpasybo

The battle of golds: victory of digital gold

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As the price of gold plunged on Friday, CNBC’s Jim Cramer said the rise of crypto may partly explain the sudden disinterest in the precious metal — a potential sign that the mainstream has flipped the script on Bitcoin (BTC) and digital assets. 

The flagship cryptocurrency continues to outperform gold and every other major asset thanks in part to an influx of new institutional buyers. Measured in bullion, 1 Bitcoin is now worth more than 20 ounces of gold. A week earlier, the Bitcoin-gold rate was around 15 ounces.

The idea that Bitcoin is taking market share from gold is nothing new. A recent analysis from JPMorgan Chase concluded that Bitcoin’s digital gold narrative is pulling investors away from precious metals. The analysts said this trend could intensify as more institutional money pours into the crypto space.

Article: As gold crashes, Jim Cramer says money is ‘all going to crypto’

What do you think about this, when the explanation is quite plausible: gold & metals are put in safe portfolio in 2021, not one that promises high returns, whereas Bitcoin & Altcoins are considered to have many potentials to bring high profits in the same group as securities stocks.

Could this be called digital gold's first victory over traditional gold? And can this trend continue until the end of 2021?
Of course I don't believe that crypto can instantly replace all gold as the primary reserve asset of governments.

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Bitcoin is a currency of very great value and it is rising and increasing its popularity in the world of digital currencies, so it has gained a large and clear rise in recent days, and it will increase and rise and will become the largest value of gold.

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Many users compare Gold with Bitcoin and also Claim the BTC is the Digital Gold but I will say that Bitcoin is the Digital Diamond and the Ethereum is the Digital Gold.


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I think that the future will witness a great victory for cryptocurrencies, especially Bitcoin . And that is after it attracted people around the world to invest their money instead of gold .

It is a good option for trade exchange, investment and saving money .

I think that we can reap a lot of profits with our cryptocurrencies, especially Bitcoin

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Bitcoin could be called digital gold , as a result of bitcoin influence in the market investors are moving to invest on bitcoin rather than traditional gold because we are in the world of technology definitely a digital gold should emerge which is called bitcoin.

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I think that this boom for adopting cryptocurrencies as an option to protect the economy against the devaluation of fiat money is what most institutions are applying, on the other hand making purchases for gold is much more complicated than making an investment in Bitcoin, apart From that when you acquire Bitcoin, your cryptocurrencies go directly to your wallet, instead if you buy gold, your bullion is protected by other institutions. The factors that you indicate in your publication and those that I have just exposed are the ones that will continue to influence the demand for Bitcoin and other cryptocurrencies to continue to increase.

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Always act with conscience and a sense of camaraderie and every time you make a post, stop for a moment and review in detail the posts of other members around you, so that you can give your respective reaction. :classic_wink:

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Gold is a very popular asset which is being used by people all over the world during many decades, so I don`t think Bitcoin can replace it right now, but in the future it can really happen, because everything becomes digital and the best variant for the digital gold is bitcoin. Crypto is still too weak comparing to the world market, but sphere grows every year and sometimes gold can be really less appreciated than Bitcoin 


 

 

 

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On 1/8/2021 at 6:41 PM, MrSpasybo said:

Of course I don't believe that crypto can instantly replace all gold as the primary reserve asset of governments.

@MrSpasybo What happens is that BTC is cheaper in its investment costs, transporting gold requires logistics and storage requires physical space and a series of expenses that must be covered, in that case BTC is easier to have and exchange without having to make trips or physical storage, I am sure that many countries are abandoning gold to get hidden in the investment of BTC, this has brought new investors who see in digital gold a reliable source of investment, cheaper in costs and more versatile in their exchange transaction because they can do it in real time between countries without going through control schemes.

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Numerous clients contrast Gold and Bitcoin and furthermore Claim the BTC is the Digital Gold however I will say that Bitcoin is the Digital Diamond and the Ethereum is the Digital Gold. Because diamonds are much more costly than gold. 

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Bitcoin is attracting the attention of many investors and as investment funds must declare their assets, we have noticed the increase in cryptocurrencies and that has generated many expectations in different sectors.
Gold is losing the opportunity to increase its capitalization due to Bitcoin, but the dollar is also losing a lot of value although it is not a store of value and inflation forces us to look for new options to take refuge and that is where cryptocurrencies appear as a disruptive option and with potential.

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Jim Cramer was shilling the top? Thats just great, maybe I should be watching him more to get the perfect counter indicators as lately I've seen many of them doing the same. Maybe when they are all singing together we can know safely where the top is. Don't listen to anyone, does Jim Cramer know a thing about Bitcoin? Obviously not, he wouldn't spend more than an hour trying to understand it and got bored easily.

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If we consider Bitcoin to be digital gold, it performed way better from the actual gold, but I think this is wrong approach, Bitcoin is not gold and has some similar attributes at the same level, as scarcity but it is mostly in the market for investing and speculating. It is used in some regions and this gives me hope that the reasons it was created are still there. The people in some latin american countries that have very high inflation have found refuge in Bitcoin. 

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Bitcoin is moving higher in price and gold is still too far from Bitcoin reach, as it will take a long road to reach a capitulisation similar to gold's. But in terms of how Bitcoin is working, it is better than gold in my opinion.

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He considered that there are no losers or winners when we talk about gold, whether physical or digital, since mineral gold continues to fulfill its objective is what is to be a stable reserve value compared to digital gold is Bitcoin, which in just one week lost 30% of its value, so how it currently takes refuge in a we will see, nothing is clear.

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Bitcoin has some similarity to the Gold in process and value compared to others cryptocurrencies. But I think it is not the moment when we compare Bitcoin to the Gold, Gold is a regularized good, Bitcoin still is not regularized. So after the regularization we will see if really the Bitcoin will stay with high price value and profitable or no.

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This boom was in debate form the start of 2020 where you have heard the prediction of 1 million, 500k 200K and in latest $140k. The price is at $40,K and touch the $42k the highest BTC. Where the bull isn't ended yet and gonna go after more higher price the figure of $50K is acceptable and the highest value of BTC is giving comfort to across the world people and people become more convenient to BTC after this Boom. The are thinking it will be potential alternative of fiat or secondary payment which have value. 

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The possibility discussed in the article is plausible, Bitcoin could have taken at least a small part of gold's market cap during this bull run, which made the gold price to depreciate. However, gold's market cap is still way bigger than Bitcoin's, and does not seem very likely that Bitcoin can take a larger amount of this market capitalization. In my opinion, both assets have good things to offer despite their respective drawbacks.

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Are we sure we should be calling Bitcoin with the name digital gold? Is Bitcoin that or is it perhaps something else. I still think that digital gold is not so required. We need a currency to use on the internet, and perhaps the same currency to use for payments in our real lives, however Bitcoin has some problems with that. Can we safely say that Bitcoin will be here for a hundred or three hundred years more just by calling it digital gold? Or that it will have interest and value thirty or forty years later?

The way I see it, Bitcoin is a great network. But, it is also the people behind Bitcoin that help to sustain it and also are giving it a better image. It is the cryptographers that support it and the intelligent people that promote it. The respect towards this asset comes when important people describe it and the price it receives it comes when investors listen to these people.

This is the marketing that works for Bitcoin right now more than anything else. And most of the investors don't seem to care to even make a Bitcoin wallet, or learn what are the private keys. Most investors are institutions in Grayscale and investors like us, but in Paypal. This doesn't have anything to do with Bitcoin and probably the way it is treated won't last for two or three decades. Can we say that Bitcoin is digital gold because someone said that? It will need three milleniums to make this judgement.

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Bitcoin have make people to leave all other valuable asset that are used to store money. Because holding and investing in bitcoin have change the life of other people in good ways which attract people around the world now to invest in bitcoin than in gold. 

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This is a small victory but the struggle for adoption will be long and take years, maybe even decades. Bitcoin has not won anything and all that are achieved today can be turned around in just a month. Bitcoin use case is not very clear always, as it started being a currency and changed. It can change again with developments and it may become something more than just the early stages of a digital gold concept.

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On 1/17/2021 at 8:53 PM, Emanuel 12 said:

Just as the traditional gold keeps growing, digital gold have taken the advantage and it's also going a very long journey. The prices are good and more people keeps using it. Name can play a very big name in the growth of a coin

The Gold in real life is more profitable as compare to the Digital BTC because the Gold price is stable and if it moves up and down then there is very less fluacting but in BTC its all about the game of fluacting.


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The sphere grows every year and is sometimes less appreciated than the gold bitcoin. Crypto is still very weak compared to the world market. This could really happen in the future, as everything becomes digital and at its best Bitcoin for digital gold. Gold is a very popular resource that has been used around the world for decades, so I don't think Bitcoin can replace it now.

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My friend, indeed, we won the digital currency gold, which is the great Bitcoin ... Bitcoin is the gold of cryptocurrencies, as it is from a decentralized side and limited in number, and it is mined and searched for in the network space in a way similar to extracting gold from mines in the earth. The difference is only in the place of mining.  Mainly control everything thanks

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Positively! A struggling decade of Bitcoin is now bringing the fruit to its holders. The sudden increase in the demand and the price of the Bitcoin showed something different and increasing acceptance all over the world creating a positive impression on its value. I think it is not wise to compare Bitcoin with tangible gold because it is something more valuable and unique than physically exist gold.

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Panic sentiment sharply intensified after the announcement on 24 June that creditor payments for the bankrupt crypto exchange Mt.Gox would begin in early July. The total amount of funds to be distributed among former clients is 162,100 BTC, roughly $10 billion. Bitcoin responded to this news with an 8% drop. It’s no surprise – such a volume of coins flooding the free market can seriously knock down prices. In the derivatives market, long positions worth $177 million were forcibly liquidated, and the total financing rate for futures contracts turned negative for the first time in June, indicating that sales exceeded purchases.   It is precisely on the expectations of Mt.Gox debt payments that the flagship crypto asset's quotes reached the lowest level in the past eight weeks last Monday. In this situation, two things are encouraging. Firstly, the deadline for repayment falls on 31 October, and it's possible that payments will be made in parts over four months rather than all at once. And secondly, there is hope that not all creditors will rush to convert their bitcoins into fiat, but will hold onto them, hoping for price growth.   In addition to the above, BTC miners exerted some downward pressure on the market. It became known that their coin reserves reached a 14-year low, as they had to sell a significant amount of BTC due to the April halving to cover operational expenses. Recall that the cost of mining bitcoin, according to JPMorgan analysts, is $53,000. Historically, this cost level is a strong support for BTC/USD. However, even in March, JPMorgan did not rule out that after the halving, bitcoin could temporarily fall to $42,000.   In the absence of positive signals, the demand for spot bitcoin ETFs continues to decline, major market participants slow down their activity, and start to take profits. This also pressures the prices. CEO of investment company CryptoQuant Ki Young Ju calculated that over the past two weeks, bitcoin whales and miners set a record by selling coins worth $1.2 billion.   According to 10x Research, all last week, US spot BTC ETFs recorded investor outflows, and on 21 June, net outflow exceeded $105 million. 10x Research believes that bitcoin will now need to find a new price range to stabilize the decline and then find growth catalysts. In the medium term, according to 10x Research analysts, it is not worth expecting BTC to return above $70,000.   Popular analyst Matthew Hyland noted that the combined bitcoin balance on centralized exchanges reached a multi-year low. In theory, this could be seen as a bullish signal, but the crypto market leader is not yet eager to show an upward trend. Naturally, the publication of key US economic data could serve as a vector for further cryptocurrency movements. If the Fed takes its first step in easing its monetary policy in September, it could support risky assets, including bitcoin. According to Cryptology experts, the chances of bitcoin reaching a new all-time high by the end of September are quite high, and what is happening now is a phase of accumulation.   Despite the current decline, many investors remain optimistic, citing the cyclical nature of the crypto market. They also do not forget about the US elections. For example, former Goldman Sachs CEO Raoul Pal predicted significant bitcoin and cryptocurrency market growth in Q4 2024. In an episode of The Wolf Of All Streets podcast, the financier noted that risky assets like bitcoin usually rally against the backdrop of US presidential elections. "The final quarter of an election year is a real 'banana zone' for all assets. It always is," Pal optimistically stated, noting that the "banana zone" for cryptocurrencies in autumn is much more pronounced than, for example, for the Nasdaq index.   Bitcoin was also supported by billionaire Michael Saylor. His company, MicroStrategy, is one of the largest bitcoin holders in the world, with 205,000 BTC on its balance sheet. Despite the negative trend, it increased its reserves by another 11,931 BTC (over $700 million) in the past month alone. Saylor is convinced of the first cryptocurrency's ability to grow to $10 million with support from China and other factors. He believes that in the future, governments, especially China, will fully embrace the first cryptocurrency and integrate it into the state infrastructure. The entrepreneur declared all pre-bitcoin economic instruments obsolete. "Before Satoshi Nakamoto, economics was a pseudoscience. All economists before Satoshi tried to develop economic laws with shells, glass beads, pieces of paper, and credit instruments," the businessman wrote, calling bitcoin a "perfect asset."   In previous reviews, we already wrote that the launch of exchange-traded spot ETFs on Ethereum could give a certain boost to the digital asset market. On 25 June, SEC (US Securities and Exchange Commission) Chairman Gary Gensler noted that the registration process for new ETFs is "going smoothly," and the approval date depends on how quickly applicants submit adjusted S-1 forms. Bloomberg analysts call 02 July the expected approval date for new products. Reuters, citing anonymous sources, reports that a consensus has been reached between fund managers and the SEC in negotiations, and only the "final touches" remain.   Co-founder of venture company Mechanism Capital Andrew Kang stated that after the approval of ETH-ETF, Ethereum's rate could correct by 30%, falling to $2,400. In his opinion, at this stage, the main altcoin attracts much less attention from institutional investors compared to bitcoin. Based on this, ETH-ETF will attract only 15% of funds compared to what BTC-ETF received at the start.   Kang noted that to increase Ethereum's attractiveness among investors, its ecosystem needs to be positioned as a decentralized financial settlement layer, a global computer, or a Web3 application store. At the same time, it will be difficult to sell new ideas for Ethereum's application to funds, as the asset is perceived by investors as an overvalued stock of a large technology company.   Significantly more positively views the future of Ethereum Matt Hougan, CIO of Bitwise, a company managing cryptocurrency funds. In his opinion, the appearance of a long-awaited exchange product is undoubtedly a positive factor, and the net inflow of investments into ETH-ETF over the first 18 months will amount to $15 billion. In his analysis, he relies on the experience of Canada and the EU, where in similar products the inflow ratio for Ethereum and Bitcoin is approximately 1 to 4 (i.e., 25%). In other words, if in the first quarter of work for spot Bitcoin-ETF the total inflow was $26.9 billion, for Ethereum it is expected to be at the level of $6.7 billion. In this case, in three months of work, the leading altcoin could rise to $4,400-5,000.   CEO of SkyBridge Capital Anthony Scaramucci believes that the price of Ethereum could rise even higher, reaching $10,000-12,000. Regarding bitcoin, the entrepreneur allows for its growth to $170,000-250,000. The main driver, in his opinion, will be the further institutional acceptance of cryptocurrency. Scaramucci called the approval of spot exchange ETFs an important regulatory barrier breakthrough for attracting new capital. Thanks to this, in his opinion, the share of digital gold in the portfolios of major players will soon be about 3%.   As of the evening of Friday, 28 June, BTC/USD is trading at $60,190, and ETH/USD is in the $3,390 zone. The total crypto market capitalization is $2.24 trillion ($2.34 trillion a week ago). The bitcoin Fear & Greed Index (Crypto Fear & Greed Index) has dropped from 63 to 47 points over the past 7 days, moving from the Greed zone to the Neutral zone.   In conclusion, here is another observation from Matt Hougan. The CIO of Bitwise presented three reasons why long-term investments in both bitcoin and Ethereum are more advantageous compared to investing only in bitcoin. These are: 1. portfolio diversification 2. the opportunity to earn on very different ecosystems and 3. economic benefit.   Considering the difference in the capitalization levels of bitcoin and Ethereum, Hougan believes that 75% of the capital should be invested in BTC and 25% in ETH. According to calculations, over the period from May 2020 to May 2024, the yield of such an investment portfolio is 3% per annum higher than one that only contains bitcoin. However, Hougan acknowledges that in the shorter term, a portfolio including 100% BTC outperforms a diversified one. Moreover, investing only in bitcoin carries fewer risks due to its higher market capitalization and features such as limited coin issuance and a phased reduction in the inflation rate to zero.   NordFX Analytical Group   Notice: These materials are not investment recommendations or guidelines for working in financial markets and are intended for informational purposes only. Trading in financial markets is risky and can result in a complete loss of deposited funds.   #eurusd #gbpusd #usdjpy #btcusd #ethusd #ltcusd #xrpusd #forex #forex_example #signals #cryptocurrencies #bitcoin #stock_market   https://nordfx.com/ 
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