The experienced Trader says, the Bitcoin setting it “is completely itself” like the Gold 1657 % explosion during the 1970s.
Exposed currency investor Farid Kruger On Monday, it attracted a historical parallel between the increase in gold prices in the 1970s and the expected path Bitcoin BTC/USD During the next decade.
What happened: In the X Publishing, Kruger published a scheme showing the average annual Gold prices in the 1970s, starting at $ 35 an ounce and a height of $ 615 by 1980, which represents an enormous increase of 1657.14 %.
Kruger has argued that Bitcoin can follow the “exactly” pattern in the next decade, driven by what he considers the desire to get out of the traditional financial system
“In both cases, we moved from” everything amazing “to” everything nonsense “in a decade. “Ideal analogy.”
See also: From Warren Buffett from Berkshire Hathaway to Jeff Bizus Amazon – Bitcoin now exceeds this Wall Street
It is worth noting that the rate of GDP growth in the United States reached average of about 3 % during the 1970s, which is less than the average growth rate of more than 4 % in the previous two decades, According to For trading economics.
This period also witnessed a major inflation due to the 1973 oil ban on the United States by Arab members in the organization of oil -exporting countries.
Kruger cited this as one of the elements that affect the attractiveness of gold, as well as factors such as high interest rates and geopolitical problems such as Russia’s invasion of Afghanistan.
Disclosure: 82 % of CFD retail accounts lose money
Why do it matterKruger predicted that Bitcoin will repeat the golden boom in the seventies of the last century that was competed by some X.
User, Morningalpha.ai, He said that the consumer enlargement, which reached its climax by 13 % in 1980, had a “great influence” on the price of gold at that time. Meanwhile, the consumer price index for April was 2.3 %.
In addition, a portion of users pointed to possible risks such as quantum computing, which can theoretically break Bitcoin encryption in the future.
Photo courtesy: Yalin Sons on Shutterstock.com
PriceAt the time of writing this report, BTC has exchanged hands at 108,946.71 dollars, an increase of 0.61 % in the past 24 hours, according to what it said Data from Benzinga Pro. Immediate gold was traded at $ 3,340.51 an ounce as of this writing, a decrease of 0.05 %.
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