Digital Asset Management firm, Blocktown Capital, has tweeted an interesting trend that Bitcoin (BTC) is undergoing: the volatility of the asset is decreasing and has slowly been approaching that of gold over the past 8 years. The firm also said that at the current rate Bitcoin’s volatility would match that of gold in a decade.
Bitcoin volatility continues to decrease and approaches the volatility of Gold over past 8 years.
At the current rate, bitcoin's volatility will match that of gold in a decade. @PeterSchiff @steve_hanke #bitcoin pic.twitter.com/4hCznvmjt8
— Blocktown Capital (@BlocktownCap) May 20, 2019
Bitcoin is often called “digital gold” as a result of its similarity to gold. Market enthusiasts have championed BTC over the precious metal for the many other advantages it brings – portability, for example. Bitcoin and cryptocurrencies are increasingly seen as an emerging asset class – even by large multinational investment firms, such as Morgan Stanley.
Of course, there are more several more factors in play and it is hard to draw a strong conclusion as to whether or not Bitcoin’s volatility will match gold, let alone in what time frame. However, all the signs are pointing towards Bitcoin’s permanence as an asset class.
