Bitcoin (BTC) is gradually gaining ground on gold, the traditional store of value. Data shows that one ounce of gold can only buy 0.0352 Bitcoin as of Feb. 17, the lowest amount of BTC eve. This shows that Bitcoin has been rewarding its investors much more than gold.
Bitcoin has massively outperformed gold over various time frames. Even if the latest one-year data is considered, Bitcoin’s risk-adjusted return is 270% while gold’s is only 24% as of Dec. 28, 2020.
The result further skews hugely in favor of Bitcoin if longer time frames of four years or eight years are compared.
In the past few years, Bitcoin has matured as an asset class. During the previous bull run in 2017, Bitcoin’s 60-day volatility was at 32%. But in the current bull phase, Bitcoin has recorded lower volatility at 14.25%. Analysts believe that as the institutional adoption increases, the volatility could drop further.
And there are no signs of a