On-chain cryptocurrency analyst Willy Woo says Bitcoin could eclipse gold’s use as a financial hedge in less than a year.
Woo tells his 210,000 Twitter followers that the portion of gold’s market cap that is actually used as a hedge against inflation could rapidly lose its dominance to Bitcoin.
Woo says only two-fifths of gold’s supply, worth $4.4 trillion, is currently serving a financial purpose. Assuming the price of gold stays constant, BTC would overtake the yellow metal as a financial hedge at a price of $240,000. Woo says the “flippening” could happen in a matter of months.
“The Flippening. 40% of gold’s supply is available for financial use; the rest locked up in jewelery/industry.
Gold cap: $11T
Gold’s “financial use” cap: $4.4T
At gold’s present price, #Bitcoin at $240k will flip Gold’s use as a financial hedge. This could happen in 12 months.”
Bitcoin is currently trading at around $37,500 and would have to appreciate by about