Bitcoin Just Became More Valuable Than Gold
The cost of a single Bitcoin rose above the cost of an ounce of gold for the first time on Thursday.
That trend held up Friday, with Bitcoin rising to $ 1,289.09 per unit while its fellow safe haven asset, gold, fell to $ 1,231.5 per ounce, based on March futures.
While their units of measurement are not comparable, the falling price of gold and rising price of bitcoin is still nonetheless, significant. Demand for gold, which investors flock to in times of uncertainty and volatility, has fallen since the election on a stronger dollar, signs of future interest rate hikes, and potentially business-friendly policies that may arise from the Trump administration. Those potential regulatory changes would raise the chances of higher-yielding stocks.
The more volatile digital currency, on the other hand, has recovered with from a plunge in January. That’s at least partially due to expectations that one (or more) of three proposals for a Bitcoin exchange traded fund may gain approval from the Securities and Exchange Commission, The Wall Street Journal reports.
