Yesterday, someone dumped around 11,000 gold futures contracts into the market increasing its supply in the market and thereby sending gold’s price tumbling down to its lowest since January.
Gold is doing something funny today. pic.twitter.com/z0cddr7LiD
— Mati Greenspan (@MatiGreenspan) April 16, 2019
As the price of gold tumbled, Forbes posted an article titled “Bitcoin Is The New Gold” the same day. With this feature, it seems that the world is finally getting around bitcoin’s concept of being the new gold in a digital form. And then comes the interesting part, bitcoin’s price just spiked up significantly. Seeing the sudden price spike, the well-renowned crypto influencer Joseph Young took to social media as he tweeted:
What just happened to the crypto market? pic.twitter.com/NGyAgY221G
— Joseph Young (@iamjosephyoung) April 16, 2019
Right now, the entire market is seeing major greens with bitcoin’s price rising by almost 3% as seen in Young’s tweet. Replying to this question, Ran NeuNer is a well-known crypto expert and the founder and CEO of Onchain Capital, a crypto investment and advisory business, tweeted:
Sorry it was me. I placed my buy orders..
— Ran NeuNer (@cryptomanran) April 16, 2019
Behind this sarcastic reply, is there a bigger picture that needs to be focused upon? Did someone sell his gold futures contracts to buy bitcoin thereby pushing its price up? A story that might not be true but absolutely probable as people are getting attracted to this asset with bitcoin being considered the gold of the future.
The battle between bitcoin and gold is often on between the proponents and opponents of the crypto world. While some accept it as digital gold, others don’t. But it can be inferred now that the trend might be shifting to the former end. Events like the Venezuelan crisis, as the Bank of England refused to give back the gold held by it to the country, fuel bitcoin’s usage as gold. Founder and partner at Morgan Creek Digital, Anthony Pompliano, stated regarding this matter:
Venezuela’s request to withdraw its own gold of worth $1.2 billion from the Bank of England getting denied is the reason we should turn to bitcoin and the crypto system of financial transaction. This is another down for the Bankers and the banking system not letting the individuals to access their wealth.
In a nutshell, we are seemingly moving towards a world where bitcoin is making its case as the supplant of gold stronger. It does carry value and can be treated as digital gold. As developments are made with the passing time, it is expected that the asset will get more acceptable and will likely become an alternate, if not the replacement, to the physical gold in the future.
Replying to the question of bitcoin becoming the digital gold while talking to BlockPublisher, the founder and chief operating officer of MarketOrder Sukhi Jutla said:
Bitcoin is still going strong after a decade and has proven itself to be a real and worthwhile use case. I believe it does have the potential to become digital gold.