-- Posted Wednesday, 11 December 2013 | | Disqus
By Jeff Desjardins
It is often said that history doesn’t repeat itself, but it does rhyme.
Bitcoin, in just nine months, has done something absolutely tremendous in that respect. While increasing in parabolic fashion, it also managed to match up exactly with the 40 year gold chart – even to the most recent correction.
Putting the two charts side by side is simply eerie:
In 1980, the gold price peaked at $850 USD during an inflationary environment where the Hunt brothers tried to corner the silver market, the Soviets intervened in Afghanistan, and the Iranian revolution was taking place. In March 2013, Bitcoin began to rally because of the Cyprus bank holiday and subsequent haircut of depositors.
Bitcoin and gold would both come back down to earth, and then start their biggest moves. Starting in 2000, gold had 12 years of consecutive gains. Bitcoin, in November 2013, was stimulated by Ben Bernanke’s comments to create the most significant price rally yet. At an interday high of the rally, one bitcoin was even momentarily equal to one ounce of gold in price.
Subsequently, they would pull back: gold corrected this year 25%. In early December 2013, China barred financial institutions from accepting bitcoin transactions. This prompted a correction as well.
Much has been said about the many similarities between bitcoin and gold. This goes even as far as to include supply, of which even those curves are almost of the exact proportions:
The main difference so far between bitcoin’s last nine months and gold’s historical chart: after bitcoin’s latest drop, it has now almost already recovered.
Meanwhile, gold has been consolidating for months – will it be next?
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-- Posted Wednesday, 11 December 2013 | Digg This Article
| Source: GoldSeek.com
