Popular crypto analyst and market commentator Willy Woo says bitcoin could flip gold’s market capitalization and become the primary financial hedge by the end of this year.
In a series of tweets, Woo explained that bitcoin is in position to carry out “#TheFlippening” in 2021, overtaking gold as the primary hedging asset. According to the on-chain analyst, only 40 percent of gold’s supply is available for financial use, with the majority being locked in jewelry and industry.
Woo calculated bitcoin’s price would need to hit $240,000 in order to flip gold’s financial use capitalization of $4.4 trillion.
Woo’s tweet came in response to a claim by bitcoin detractor and gold bug Peter Schiff, who said last week that gold constitutes a true store of value compared to bitcoin.
According to Schiff, investors buying gold today can sell their bullion in the future for use as a metal, as opposed to bitcoin which derives its value from market speculation.
Woo previously called a $100,000 price prediction for bitcoin “very conservative,” while saying the sweet spot in valuation was between $300k and $1 million.
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