Founder Of ByteTree Trusts Bitcoin Best Comparable To Tech Stocks Over Gold
Bitcoin has been argued as being digital gold, with possibilities of the giant one day replacing actual gold, but it seems like the giant crypto is a better fit when compared against tech stocks. In a recent Ethereum World News post, Founder of ByteTree, Charlie Morris was the one to share this viewpoint and has since provided an example.
Morris initially spoke to Daily Telegraph UK regarding his viewpoint on Bitcoin’s value increasing and how this is possible if many people actually use it. This is not a surprising statement, as many leaders and crypto fanatics noted this at well. However, interesting food for thought is what Morris says next:
“Bitcoin is an ultra-high growth asset that behaves just like internet stocks, just with extra vigour,”
adding that he does not predominantly see why Bitcoin should be deemed digital gold. While, he agrees that Bitcoin does have as much as a 5% appreciation and that it comes in limited supply, like gold,
“but that’s as far as it goes.”
Morris supposedly did the math and found that if Bitcoin is to become the next gold, then dividing the total amount of gold above ground by the total supply of bitcoin gives $333,000 – taking into account
“100% displacement of the yellow metal.”
Instead of comparing to gold, Morris thinks to assess Bitcoin transactions are ideal – disclosing that the current $600 billion will soon hit the trillion ranges. Moreover, he shared:
“To put that into perspective, $18 billion of Bitcoin changed hands in 2013, when there was widely reported bubble, and $576 billion in 2017, when there was said to be another bubble.”
This was said in arguing that Bitcoin’s price can be predicted to be higher in this comparison versus that of gold.
Correlation Between Bitcoin And Tech Firms
The above was given as an example of how Bitcoin (purple) trends with that of the Solactive Social Media Index (Pink). Evidently, both grow together over time – which led Morris to conclude that Bitcoin is best comparable to tech stocks.
Whether this is advantageous or not becomes questionable. While society is leading more towards technology, its respective stock market has been rather slow. This could lead one to question Bitcoin’s growth potential as a whole.
This is definitely an interesting comparison, and given the nature of both stocks, the further assessment could be done using Time Series to better understand their correlation, whether one leads the other, etc.