Earlier this week, a discussion took place on Twitter between gold bullion dealer Peter Schiff, who began his tweets by talking about the relative advantages of the Bitcoin currency compared to gold as a store of value, and as usual, the balance always tends to gold, to which Tesla CEO Elon Musk responded. That gold and bitcoin work almost the same way.

Elon Musk has long been famous for his tweets that move the financial markets, especially in the recent period when his tweets referring to Bitcoin and the digital currency “Dogecoin” abounded.

In different movements between assets, and we are talking here about bitcoin and gold, where the value of gold decreased and became estimated at $ 57 thousand per kilogram, and the bitcoin rose above this level, so that 1 bitcoin equals 1 kilogram of gold.

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The number is fluctuating as at the time of writing this article Bitcoin has fallen to the level of 56 thousand dollars and thus is less than the price of 1 kilogram of gold.

When fiat money goes down, gold and cryptocurrencies go up:

The price of gold relative to Bitcoin has reached an all-time low, while the price of Bitcoin itself is at an all-time high.

Last summer, the value of the US dollar fell sharply due to quantitative easing measures.

The US Federal Reserve quickly printed an unprecedented amount of money.

While government statistics said that the inflation rate did not exceed 1%, the cost of living and the prices of goods and services rose sharply during the period of the Corona virus epidemic.

Around this time, both gold and bitcoin rose as well.

On July 1, 2020, the price of a kilogram of gold was $57,093.

By August 4, a kilogram of gold had reached $65,477.

In the same period, the bitcoin price rose from $9,145 to its highest level on August 2 at the level of $12,034.

Read:Robert Kiyosaki: We are in the biggest bubble in history and governments are going to take over all cryptocurrency

With the decline of the world’s number one reserve currency, many investors have turned to both gold and bitcoin as a hedge against inflation.

The price of gold has since fallen, although it has remained fairly stable.

But bitcoin is the standout during this period as it nearly tripled what it was in August 2020.

Will Bitcoin continue its path and not be satisfied with 1 Bitcoin = 1 Kilo of Gold?

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