While ounce of gold is priced at $1,228, the digital currency, Bitcoin has hit above $1,290. A number of factors have been driving the two essential commodities.
Low rates have helped gold as investors to choose U.S bonds and if Fed boosts rates, bonds are likely to become attractive. Meanwhile, the demand for bitcoin has driven prices higher.
As gold and bitcoin appear as the best for investors, it could also provide as security in times of crisis. But they are also certain major differences - the precious metal is a physical (tangible) asset that has been popular for hundreds of years. On the other hand, Bitcoin was introduced only in 2009 and is entirely short-lived.
Charles Hayter, CEO of digital currency comparison website CryptoCompare, stated that there's no direct correlation between their price.
Charles Hayter, CEO of digital currency comparison website CryptoCompare, stated that there's no direct correlation between their price.
"The truth is that bitcoin is its own asset class in its own right and does fare well in times of uncertainty," he says.
Bitcoin can be exceptionally volatile: Its value fell more than 30 percent earlier this year after authorities in China -- where huge trading takes places -- stepped up scrutiny of Bitcoin exchanges.
"The issue where the [Chinese central bank] was reining in Chinese bitcoin exchanges has now been brushed under the carpet," Hayter says.
"Moves to regulate bitcoin more stringently will bring short term woes but will ultimately strengthen the ecosystem."
"The issue where the [Chinese central bank] was reining in Chinese bitcoin exchanges has now been brushed under the carpet," Hayter says.
"Moves to regulate bitcoin more stringently will bring short term woes but will ultimately strengthen the ecosystem."
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