For 6,000 years, gold has been considered scarce, but its extraction intensified with the advent of the industrial age. This highlights the uniqueness of Bitcoin, which has undergone its fourth halving, noted analyst and CMCC Crest co-founder Willy Woo.
Gold production going to the moon as technology gets better. Gold has had 6000 years of being scarce. That changed as we moved into the industrial age.#Bitcoin supply growth dropped below gold this week, it’s only get scarcer.
Yup, this fundamental premise of S2F valuation. pic.twitter.com/8wBR140c06
— Willy Woo (@woonomic) April 22, 2024
According to the expert, technological advancements have boosted the extraction of the precious metal. He provided a chart of the global supply growth of the asset (in metric tons):
- 2009 -> 165,000
- 2010 -> 168,000
- 2011 -> 171,000
- 2012 -> 173,000
- 2013 -> 176,000
- 2014 -> 179,000
- 2015 -> 182,000
- 2016 -> 185,000
- 2017 -> 189,000
- 2018 -> 192,000
- 2019 -> 195,000
- 2020 -> 198,000
- 2021 -> 201,000
- 2022 -> 204,000
- 2023 -> 207,000
In his view, these figures reinforce the foundations of Bitcoin’s S2F model. He shared a chart of the long-term returns of the leading cryptocurrency compared to gold and stocks.
“If you are young, you cannot afford not to invest in Bitcoin. Real inflation is 10–15%, according to Shadow Stats,” Woo emphasized.
The expert explained that exponentially growing technologies create deflation. Through the printing press, it is transformed into inflation at an annual rate of 2%.
“With a global GDP of $100 trillion, this is the largest robbery on the planet. Now bankers want to set a higher bar for theft,” the specialist concluded.
Back in April, analyst PlanB stated that the current halving cycle is no different from the previous ones. He expects Bitcoin to reach $100,000 in 2024 and $300,000 at its peak the following year.
Earlier, Glassnode conducted a retrospective on the halving of miner rewards in terms of the price and fundamental network metrics of the leading cryptocurrency.