How is the Bitcoin price trending? How is it similar and different from gold?

According to Ouyi data, the price of Bitcoin is now down 33% from its peak of $69,000, but it is still 90% higher than the same period last year. In November and December of this year, Bitcoin price sentiment remained bearish all the way. Bitcoin's proponents have to wait to see if the price of Bitcoin will miraculously change from bearish to bullish in this final time.

What are the similarities between Bitcoin and gold?

Limited availability

The value of Bitcoin and gold comes from limited supply and rising consumer demand during periods of increased consumer price pressures. Both the supply of gold and Bitcoin is limited, and it is expected that bitcoin will run out by 2140.

Medium of exchange

Both Bitcoin and gold can be used to exchange goods and services. However, to become a functional medium of exchange, Bitcoin must first firmly establish itself as a store of value. In other words, before people want to use Bitcoin for their daily transactions, they need to want to pay in Bitcoin and keep their Bitcoin balances.

Risk aversion attraction

Like gold, Bitcoin is independent of any single system.

Historically, gold prices have performed well during periods of high inflation. But the precious metal's performance this year is negligible compared to Bitcoin. Because, Bitcoin has risen by more than 80% so far this year, while gold has fallen by about 5%. In October, gold rose just 1.5 percent, while cryptocurrencies rose nearly 40 percent over the same period.

How is Bitcoin different from gold?

Gold is less volatile than Bitcoin, so this could be the biggest reason to be good for gold. During economic downturns, it was popular among investors. This precious metal has a stable price record, which explains this.

Looking ahead, the presence of institutional investors in the cryptocurrency market is likely to dampen its volatility, smoothing the dynamics of the market. I believe that at some point, extreme volatility will no longer be a problem for cryptocurrencies.

Owning, trading, buying and selling Bitcoin has many advantages over gold, which is more convenient to use and easier to stay safe with, and gold is a difficult asset to manage. Physical gold is scarce. Paper gold is still a bit of a concern. U.S. gold stocks are highly valued. Bitcoin, meanwhile, is just one step away from us, so it's no wonder people jump straight to cryptocurrencies when looking for shelter.

It is worth noting that when trading Bitcoin, it is best to go to the exchange that is perfect in all aspects, such as the current Ouyi is more reliable, whether in terms of scale or security, Ouyi is top-notch, because Ouyi has the world's top technical team, distributed parallel technology, high-speed matching engine and digital asset storage multi-signature cold wallet.

While Bitcoin is still an unstable asset, it is likely to compete with other assets in the medium- and high-risk investment space in the coming years. Therefore, if you do your own research and limit the amount of your investment to what you are willing to lose, it is also easy to achieve profitability. In addition, cryptocurrency enthusiasts willing to delve deeper can find a variety of emerging alternative currencies that have the potential to generate good profits.