How does gold and its digital competitor Bitcoin relate to each other?
Gold is a traditional store of value, while Bitcoin from a conventional standpoint is highly risky. Even though the latter was nicknamed "digital gold," we can see from the chart below that it does not act like one.
In the above quarterly chart, I combined 5 items:
The gold price is in black bars on scale A. The Bitcoin price is in orange bars on scale B. The U.S. money supply indicator M2 (M2) is in histogram on scale C. The red line represents the U.S. real interest rate (RIR) on scale D. There is a 2-year correlation coefficient of Bitcoin to gold (blue) in the sub-chart. Continue reading "Bitcoin VS Gold VS S&P 500"