Crypto: Bitcoin Vs. Gold: Key Differences That Could Position BTC For A Big...

Bitcoin has been called "digital gold," and some of its key properties may help BTC rally more than the precious metal in percentage terms.

Bitcoin (BTC) has vastly underperformed gold (XAU) in the past year, dropping by 13.25% compared with the precious metal’s almost 100% rally. Can BTC catch up to gold’s gains?

Bitcoin’s supply is capped at 21 million, with about 1 million left to be mined.

Gold miners increase production when prices rise, unlike Bitcoin miners.

Bitcoin’s small size versus gold amplifies any potential upside even from minor reallocations.

Bitcoin’s issuance does not respond to higher prices like gold.

The protocol releases new BTC on a fixed schedule, which tapers over time through halvings toward a hard 21 million supply cap.

Miners can add machines or switch them off, but they cannot change how many coins the network issues.

“The problem with gold as a long-term treasury asset is that it lacks a difficulty adjustment and halving,” said Pierre Rochard, the CEO of Bitcoin Bond Company, adding:

Global gold production has increased over the past 25 years, from about 2,300 tonnes in 1995 to over 3,500 tonnes by 2018, according to the World Gold Council.

Source: CoinTelegraph