Bitcoin’s probable leap in 2020 while Gold stays behind

Bitcoin’s future rise while Gold stays behind
On October 1, the Munich-based, state-owned bank BayernLB published its latest research on “Megatrend Digitalization” and Bitcoin.

The report suggested that everyone will witness the highly anticipated Bitcoin leap from its current price of about $8,300.

The financial institution Finanzgruppe explained that historically, gold had to earn its high stock-to-flow ratio. It has always been the commodity with the highest rate. In theory, Bitcoin can succeed in obtaining a similar stock-to-flow ratio to that of gold in the upcoming couple of years. In a way, Bitcoin has always completely open monetary system operating on a purely voluntary basis.

The stock-to-flow ratio for a commodity means that a commodity’s definition equals its years of reserves in comparison to its annual supply. However, a commodity such as gold is held in reserves. In addition, it is divided by the amount of the asset produced annually.

Experts bet that by May 2020, Bitcoin’s price will rise to USD 90,000.

Future of Bitcoin: probable drastic price drop
Hypothetically, Bitcoin should be harder than gold. In theory, it is an ultra-hard type of money. However, it is hard to predict the future. Even the best statistical and digital financial systems fail in doing so. Probably, Bitcoin’s degree of hardness will inexorably increase even further.