Waking up today and reading up on the latest crypto & market news I noticed that one topic that was firing up like hotcakes and that was, the price of gold…
Since it was essentially created and especially when it surged in price in December of 2017, bitcoin has been compared to gold. Also dubbed as digital gold, the story of bitcoin and gold is a tale of old and for traditional market investors and economic analysts to crypto enthusiasts, bitcoin increasingly is being seen as an alternative to gold.
So whereas they are both similar assets in their characteristics, both are scarce, decentralised, borderless and non-sovereign and take a lot of their value from individuals which might give it a purpose.
On Thursday this week, we saw gold take a hit of up to $40 leaving it with a price of $1,510 from $1,550.
As reported by Ethereum World News, this might not seem like a lot (2% drop) but it is a huge loss for a liquid class asset worth $7 trillion.
The drop of gold on Thursday was actually the worst daily loss that gold has sustained in some around six years when bitcoin was only four years old.
Mining.com has written, “The gold futures market has been quiet in recent years, but today’s wild swing is in dollar terms the biggest fall in the price since 2013 when gold was trading at almost exactly today’s levels in the mid-$1,500s.”
This all came when news surfaced about authorites and political figures and members of parties from the United States and Chinese governments are to meet to discuss trade. Whether this was the catalyst for the drop in golds price who knows but it is a strange coincidence, no?
It will be interesting to see where gold goes from here. For more news on this and other crypto updates, keep it with CryptoDaily!