The ongoing debate between Bitcoin (BTC) and gold has emerged once more in the cryptocurrency landscape. With recent fluctuations in prices, many investors are curious about the price point Bitcoin must achieve to match gold’s market capitalization.
As per insights from CoinGecko and the World Gold Council, Bitcoin’s current market cap stands at around $2.26 trillion, while gold’s total market cap is estimated at $25.39 trillion. This disparity indicates that for Bitcoin to “flip,” or exceed gold’s valuation, its price would need to soar to roughly $1,275,159.
When examining performance metrics, Bitcoin has surged by an impressive 1012.13% over the past five years—significantly outpacing gold’s growth of 89.42%. However, when looking at year-to-date returns, gold has outperformed Bitcoin with a return of 39.28%, compared to BTC’s 21.67%. Over the last month alone, Bitcoin experienced a decline of 2.35%, whereas gold saw an increase of 7.89%.
Additionally, there are notable distinctions regarding supply growth between these two assets. The annual supply growth rate for Bitcoin is just 0.83%, with mining rewards halving approximately every four years leading to reduced new issuance over time. In contrast, gold experiences an annual supply growth rate of about 1.72%, primarily due to newly mined and recycled sources of this precious metal—highlighting Bitcoin’s characteristic as a long-term asset with low inflation potential.
*This should not be considered investment advice.