Is there any relationship between gold and Bitcoin? How to view gold and Bitcoin

What is the relationship between gold and Bitcoin? Many people think that gold and Bitcoin are the same investment currency products. In fact, this is not the case. However, we have to admit that gold and Bitcoin have similarities. The most similar point is probably the irregular price fluctuations. However, compared with Bitcoin, the price of gold has always been relatively stable, and the overall price fluctuation is not particularly large.

Regarding the difference between gold and Bitcoin, first of all, gold is a physical investment product, while Bitcoin is a virtual digital currency. Gold can be seen and touched, while Bitcoin is a string of encrypted numbers derived from a computer algorithm, so the price of gold has been relatively stable since ancient times and will not fluctuate greatly. Bitcoin was almost worthless at the beginning, but in just a few years, the price of Bitcoin has reached RMB 60,000, which is completely better than any currency in history.

As a globally circulated currency, gold has very good liquidity. Due to its own good appreciation and constant price characteristics, the gold market will never fluctuate as drastically as Bitcoin.

Bitcoin: Most people think that the value of Bitcoin lies in the constant speculation, appreciation, purchase, and sale of Bitcoin, and then earning the difference. In fact, the real value of Bitcoin lies in the blockchain technology based on digital currency, and the current value of blockchain technology has far exceeded people's imagination of blockchain technology. Bitcoin, as a virtual digital currency, is also a relatively young currency, and the price trend of Bitcoin has been ups and downs in recent years, so it has certain risks compared to gold.