TL;DR Breakdown
- PlanB reignites Bitcoin vs gold debate: Will BTC reach $135K by Dec 2021?
- PlanB’s latest tweet reignites the Bitcoin vs gold debate
- At current rates, 1 BTC is equal to 18 ounces of gold
- PlanB predicts that BTC denominated in gold is set to rise further
PlanB, the famed crypto analyst and stock-to-flow expert, has broken his self-proclaimed six-week hiatus from crypto predictions. In his latest tweet, he has once again bought the Bitcoin vs gold debate at the center by claiming that BTC denominated in gold will rise in value in accordance with BTC value.
It is a universal fact that gold has been a time-tested storehouse of value. For centuries, people have used gold to store and pass on their wealth to future generations. Governments have relied upon gold to secure their financial credibility.
The gold standard was the De Facto currency benchmark until 1971 when the U.S. dollar was delinked from gold.
Now, Bitcoin promises similar value storehouse characteristics. Modern financial pundits often compare Bitcoin with gold considering its price movements in volatile times, which mimic other safe-haven assets. But to what extent is the Bitcoin vs gold debate valid, and for how long?
PlanB opens up Pandora’s box – BTC denominated in gold sends positive vibes
For a few years now, Bitcoin price movements and correlation with gold have fascinated crypto analysts. During the 2020’s March crash, Bitcoin showed similar safe-haven characteristics by rising in accordance with the turbulent times. So far, Bitcoin has outperformed gold by a significant margin, especially in the last year.
PlanB, known for his highly bullish crypto tweets, claimed that BTC could touch $2,88,000 by 2024. The bullish BTC price prognosis comes from his famed stock-to-flow analysis, which uses complex forecasting technical indicators.
Despite the recent price dips and stagnation, the price is going to entice the traders and investors to HODL.
His studies always seem fixated on overly bullish long-term price goals. Even in the worst case, PlanB says that BTC would cross $1,35,000 by the end of 2021. These lofty price levels may seem unreal, but he has a huge fan base that believes in his technical analysis.
BTC/USD stock-to-flow model – Is Bitcoin vs gold comparing apples to oranges
With an all-time high of $64,000, Bitcoin is far from the PlanB’s predicted levels. Multiple charts show that heavy to very-heavy resistances are blocking the Bitcoin’s journey to fresh highs. At present prices, 18 ounces of gold are equivalent to 1 BTC.
Bitcoin price is hovering near $34,000, and it is a long journey from here to $1,35,000, considering there are only five months left in 2021. Calls for another bearish phase in BTC are growing as the digital asset aims to integrate more into the mainstream finance.
PlanB’s latest cryptic tweet has certainly ignited the Bitcoin vs gold debate in the crypto circles no matter the price.
