Gold Priced in Bitcoin - How Does it Stack Up?

For some time now, Bitcoin has been compared to Gold in many different type of ways. BTC has been referred to as 'digital gold'. It has also been called a safe-haven which Gold is known for. Much of this is common knowledge, so I will attempt to shed some light on a few things that are not commonly known.

How Does BTC perform versus Gold?

Gold prices have been on a tear, but how is it performing against Bitcoin? After all, BTC has had a performance in recent months that is nothing short of impressive. 

The Crypto community has grown a lot over just a few years. One thing that I have noticed in this community is the love for Tradingview. Indeed, it is a robust platform that gives you everything that you need in one package. There are a ton of features that are available, I'll show you one that you may or may not have known about.

Tradingview has an option to combine multiple symbols. You can subtract, add or even divide two symbols. We can use this method to create what is known as a synthetic asset, and use that to gauge Bitcoin's performance versus the price of gold.

 

The chart above shows us the price of Gold in term of Bitcoin. In other words, if you wanted to buy an ounce of Gold today, it would cost you roughly 0.13 BTC. 

To come up with this chart, all you have to do is enter the following into the box where you would normally put your ticket symbol.

XAUUSD/BTCUSD

 You will have the option to pick which exchange you want to gather the BTCUSD data from. The important thing here is the '/' (backslash). What this does is take the price of gold in dollar value and divide that by the price of bitcoin in dollar value. The end result is that it removes the dollar out of the equation.

 So there you have it. Gold priced in Bitcoin. 

Another way to do it is by using the 'compare' box. You can overlay two charts and get a good idea of how they correlate to each. Why not try running a compare with the S&P 500? If BTC does in fact move opposite of the US index, it would prove that the crypto is in fact a safe haven. After all, the S&P 500 is considered the benchmark when it comes to risk assets. Is there anything else you want to do in Tradingview but don't know how? Shoot me a message in the comments and I'll be happy to help out.

 The Gold Analyst