Did you land on this article because you searched for “bitcoin vs gold”? You’re not alone. Lucky for you, you’ve come to the right place. We love discussing Bitcoin and gold and have a series on the gold standard and gold mining versus crypto mining to prove it!
Today, we’ll examine Bitcoin vs gold’s value in two different ways.
Measuring Bitcoin and Gold
Gold and Bitcoin are measured differently, which makes sense since one is tangible and the other is digital. Bitcoin is measured in increments of coins, and gold is measured in increments of troy ounces. You can also purchase both in even smaller increments than these. The smallest increment of Bitcoin is a Satoshi (1 Satoshi = 0.00000001 BTC), and the smallest increment in which you can buy gold is a gram (0.032 troy ounces). As always, supply and demand fuel the worth of both assets.
Current Worth of Bitcoin vs. Gold
As of writing this, Bitcoin is valued at approximately $53,700 per coin, and according to precious-metals retailer APMEX, gold is worth $1,783 per ounce. That means, currently, one bitcoin is worth 30 times more than one ounce of gold.
(Side note: Want to see the real time value of Bitcoin? Scroll to the top of the page and check out the left upper-hand corner for an up-to-date value!)
The first time one bitcoin became worth more than one ounce of gold was in 2017, when gold was valued at $1,235 and Bitcoin squeaked by it to clock in at $1,271 per coin.
If You Invested $1 in Bitcoin and Gold…
Bitcoin forecasting site WooBull Charts created a more apples-to-apples comparison of Bitcoin vs gold by detailing the changing worth of a $1 investment in both over the years. Let’s say you invested $1 in gold and Bitcoin in 2017 when one Bitcoin surpassed the value of one ounce of gold. According to WooBull Charts, your $1 purchase in gold would be worth $1.39 today while your $1 investment in Bitcoin would total $40.81.
For more eye-popping numbers, let’s look at 2009. This was near the birth of Bitcoin, when one bitcoin was worth $.0069 and one gold ounce was worth $1,149. A $1 investment in both then means in 2021, you’d have $7.4 million in Bitcoin and a paltry $1.56 in gold.
Which would you rather have?
Stay tuned for our next article in this Coinsource series!