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    Bitcoin’s Gold Ratio Hits Record High, Predicted to Reach 89 Ounces Per Coin

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    HI Why 'extreme' gold net longs can also push Bitcoin price to new highs in 2021, B-man

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    Bitcoin’s gold ratio has reached a record high, equating to 40 ounces of gold per Bitcoin, as the cryptocurrency continues to outperform and gain market share from gold. Expert trader Peter Brandt predicts this could rise to an even higher 89 ounces per Bitcoin. The upsurge in Bitcoin’s value comes in spite of increased difficulty in mining the digital asset. The emergence of Bitcoin as a “digital version of gold” has been suggested by several key figures, including ARK Invest founder and Bitcoin advocate Cathie Wood.

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    Bitcoin continues breaking new records and making headlines. Most notably, the Bitcoin to gold ratio has hit an all-time high. Experienced trader Peter Brandt recently revealed this on his social media on Dec. 16. So, what does this ratio mean? It’s basically a measure of how many ounces of gold it would cost to buy one bitcoin. According to Brandt, this figure has reached a high of 40 ounces of gold per bitcoin, specifically when Bitcoin went over $106,000 for the first time on Dec. 16. The price of gold at the time was around $2,650.

    Brandt also believes the ratio can continue to increase up to 89 ounces of gold for one Bitcoin. This factors in Bitcoin’s potential to keep gaining market share from gold, which has a market worth of $15 trillion! For context, Bitcoin’s value at this moment is roughly $104,690, with a total market value of about $2.1 trillion.

    This is a reputable prediction, supported by others like ARK Invest founder and Bitcoin supporter Cathie Wood, who also sees considerable promise in Bitcoin’s growth, as said earlier this month. This comes as Bitcoin becomes increasingly seen as a digital version of gold.

    A snag along the way could be the fact that mining Bitcoin is getting tougher. In a nutshell, Bitcoin mining involves solving complex math problems to add transactions to the network and receiving new Bitcoins in return. The difficulty of these problems has reached an all-time high, as seen on Dec. 15. It’s planned to get adjusted and probably level up on Jan. 1, 2025. So, getting your hands on new Bitcoins could become harder. But, potentially, more valuable!

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