Why bitcoin is better than gold
Financial analyst Nick Carter conducted a study in which he found out that currently the volume of bitcoins exceeded the volume of the over-the-counter market (OTC) of gold. In 2018, the over-the-counter OTC gold market reached $ 446 billion, while this year the Bitcoin market is estimated at $ 1,38 trillion.
Thus, the excess was about 200%, which indicates the formation of Bitcoin as a new asset class.
To estimate the OTC gold exchange, Carter used statistics from the London Bullion Market (LBMA), which includes HSBC, ICBC Standard Bank, JP Morgan, Scotiabank and UBS. On average, the monthly market for gold is less than $30 billion, and silver is less than $5 billion.
According to CoinMarketCap, in the past month, the Bitcoin market size was $ 136 billion, and this does not include derivative exchanges, for example, BitMEX, whose volume is comparable to the spotcoin spot markets.
Of course, the total amount of gold can be much higher than OTC markets due to paper gold. In COMEX-type markets, paper gold is purchased with the provision of precious metal stored in a safe, but there is a small portion of stocks there.
There are several methods for valuing paper gold and the metal - at a ratio of 100 to 1, or even 1000 to 1. Regardless of the numbers, the bulk of gold trading is carried out using derivatives that are not gold per se. This product reduces the price of gold, which in reality may be higher.
The volume of the over-the-counter gold market reflects the real volume of physical trading, and Bitcoin significantly exceeded these figures. This suggests that Bitcoin is more in demand than physical gold.
In part, this position confirms the opinion of experts that, as a bitcoin currency is better than gold, it is more liquid and safe. And that makes it a good option for international trade.