{"id":411512,"date":"2022-03-03T02:30:00","date_gmt":"2022-03-02T23:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/45000-bitcoin-looks-cheap-when-compared-to-golds-marketcap\/"},"modified":"2022-03-03T02:30:00","modified_gmt":"2022-03-02T23:30:00","slug":"45000-bitcoin-looks-cheap-when-compared-to-golds-marketcap","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/45000-bitcoin-looks-cheap-when-compared-to-golds-marketcap\/","title":{"rendered":"# $45,000 Bitcoin looks cheap when compared to gold\u2019s marketcap"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a27c13f3e82c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a27c13f3e82c\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/45000-bitcoin-looks-cheap-when-compared-to-golds-marketcap\/#The_%E2%80%9Cdigital_gold%E2%80%9D_thesis_is_being_proven_right\" >The &#8220;digital gold&#8221; thesis is being proven right<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/45000-bitcoin-looks-cheap-when-compared-to-golds-marketcap\/#The_gold_ETF_versus_Bitcoin_exchange-traded_products\" >The gold ETF versus Bitcoin exchange-traded products<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># $45,000 Bitcoin looks cheap when compared to gold\u2019s marketcap <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Bitcoin (BTC) pulled off an impressive double-digit rally this year, but the digital asset has been struggling to break the $45,000 resistance lately. This level does not hold any historical importance because it has been easily breached multiple times. The same can be said for Bitcoin&#8217;s $850 billion capitalization, which isn&#8217;t anywhere close to silver&#8217;s $1.4 trillion, or the Amazon and Google&#8217;s $1.7 trillion market value.<\/p>\n<p>Bitcoin&#8217;s market cap is often compared to gold, which has a $12.3 trillion total value and is currently the leading global store of value solution. Therefore, the answer to the $45,000 resistance might lay in institutional investors&#8217; comparison of BTC versus gold.\u00a0By looking at institutional investor funds assets under management and daily trading volume, it is possible to infer that Bitcoin&#8217;s 93% market capitalization discount is justified.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_%E2%80%9Cdigital_gold%E2%80%9D_thesis_is_being_proven_right\"><\/span>The &#8220;digital gold&#8221; thesis is being proven right<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Gold has always been viewed as a proxy for Bitcoin and Cointelegraph previously covered Bitcoin&#8217;s multiple use cases, but the narrative that it is a digital store of value has always been its flagship feature. <\/p>\n<p>Governments around the globe have implemented tighter financial controls for many reasons, which could reinforce the self-sovereign and decentralized advantages of cryptocurrency. For example, China&#8217;s <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social<\/a> credit system places offenders on a social credit blocklist, which will stop them from securing loans or even using the transportation system.<\/p>\n<p>Most recently, Canada&#8217;s short-lived Emergencies Act gave financial institutions the discretionary power to freeze protesters&#8217; bank accounts with no civil liabilities on Feb. 15. Another example is this week Russians have been sanctioned from payment services like <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">App<\/a>le Pay and Google Pay.<\/p>\n<p>These events could make an analysis of the gold to Bitcoin market capitalization even more relevant.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-03\/1fd82f58-a2dc-49d4-9157-9c53b9e40904.png\"><figcaption style=\"text-align: center;\"><em>Most valuable tradable global assets. Source: 8marketcap.com<\/em><\/figcaption><\/figure>\n<p>According to the above data, BTC&#8217;s current $837 million market capitalization translates to roughly 7% of gold. To assess how those markets are valued, one should compare their daily traded volume and institutional holdings.<\/p>\n<p>Cryptocurrencies are known for inflated exchange-traded numbers, but some providers, including Nomics, have their own adjusted volume calculations.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-03\/41859d1c-e286-4a36-8171-a41d68b645b3.png\"><figcaption style=\"text-align: center;\"><em>Accumulated 30-day volume on March 2, USD. Source: Nomics<\/em><\/figcaption><\/figure>\n<p>The above data shows a $404 billion 30-day exchange volume for Bitcoin, which is equivalent to $13.5 billion per day. Exchange-traded products such as the Grayscale Bitcoin Fund (GBTC) added another $0.4 billion daily liquidity, according to CryptoCompare&#8217;s<em> <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/data.cryptocompare.com\/reports\/digital-asset-management-review-february-2022\">February 2022 report<\/a>. Therefore, Bitcoin currently presents an aggregate $13.9 billion average daily volume.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-03\/87431b51-effb-4474-afce-aa58b6741bb7.png\"><figcaption style=\"text-align: center;\"><em>Average daily trading volumes, USD billion. Source: gold.org<\/em><\/figcaption><\/figure>\n<p>Meanwhile, according to GoldHub, there is $170 billion in daily liquidity for gold, including registered over-the-counter transactions. This is in addition to regulated futures markets and gold exchange-traded products. Thus, Bitcoin volume currently presents roughly 8% of gold&#8217;s.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_gold_ETF_versus_Bitcoin_exchange-traded_products\"><\/span>The gold ETF versus Bitcoin exchange-traded products<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Bitcoin&#8217;s multiple exchange-traded products such as Grayscale GBTC and exchange-traded notes have grown considerably. As a result, there are $37.8 billion in assets under management locked in Bitcoin exchange-traded products. That is equivalent to 4.5% of the cryptocurrency market&#8217;s current $840 million market capitalization.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-03\/e470d8dd-693b-47b6-b2ac-7d1c778efb79.png\"><figcaption style=\"text-align: center;\"><em>Total Bitcoin listed investment vehicles, USD. Source: Funds, Bloomberg, ETF.com<\/em><\/figcaption><\/figure>\n<p>Gold-backed ETF products total $221.2 billion, according to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.gold.org\/goldhub\/data\/global-gold-backed-etf-holdings-and-flows\">GoldHub data<\/a> on Feb. 25. Excluding the aggregate <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.gold.org\/goldhub\/data\/above-ground-stocks\">61% non-financial gold use<\/a> (jewelry, industrial, others), the remaining market capitalization stands at $6.0 trillion. Therefore, the fund&#8217;s exchange-traded investment vehicles correspond to 3.7% of the adjusted gold&#8217;s market value.<\/p>\n<p>At $45,000, Bitcoin&#8217;s average volume traded and institutional investors&#8217; holdings roughly match gold&#8217;s markets. While the $850 million market cap level might be a short-term concern for investors, the cryptocurrency has other emerging use cases, such as El Salvador&#8217;s micropayment channels that use Lightning Network <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a>.<\/p>\n<p>As &#8220;digital gold&#8221; becomes only a part of Bitcoin&#8217;s valuation model, traders are likely to price in higher upside, and consequently, the $45,000 level should become a distant memory.<\/p>\n<p><em>The views and opinions expressed here are solely those of the <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/noshitcoins\"><em>author<\/em><\/a><em> and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.<\/em><\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/45-000-bitcoin-looks-cheap-when-compared-to-gold-s-marketcap\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# $45,000 Bitcoin looks cheap when compared to gold\u2019s marketcap &#8221; Bitcoin (BTC) pulled off an impressive double-digit rally this year, but the digital asset has been struggling to break the $45,000 resistance lately. This level does not hold any historical importance because it has been easily breached multiple times. The same can be said&#8230;<\/p>\n","protected":false},"author":1,"featured_media":411513,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDMvNzMwODI0ZTQtYWVmNy00YmUzLThhYWEtMDI2NzEwZDkwODlkLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,74863,75849,76550,74939,82450,22974,4973,71835,73785,70359],"class_list":["post-411512","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-cryptocurrencies","tag-etf","tag-grayscale","tag-market-analysis","tag-micropayments","tag-canada","tag-china","tag-gold","tag-markets","tag-stocks"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/411512","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=411512"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/411512\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/411513"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=411512"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=411512"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=411512"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}