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Analyst PlanB: Bitcoin Significantly Undervalued Compared to Gold Based on Scarcity Metrics

Cryptocurrency analyst PlanB contends Bitcoin is dramatically undervalued relative to gold when comparing asset scarcity metrics and market capitalization.

Gold’s market capitalization currently stands at approximately $20 trillion, significantly outpacing Bitcoin’s valuation near $2 trillion.

Scrutiny of stock-to-flow ratios—measuring asset scarcity—reveals Bitcoin commands a figure of roughly 120, double gold’s ratio of about 60.

This substantial scarcity disparity underscores Bitcoin’s potential for broader integration within diversified investment portfolios as a strategic inflation hedge, according to the analyst’s assessment.

PlanB’s analysis concludes that Bitcoin’s current market cap represents merely one-tenth of gold’s valuation despite its superior scarcity characteristics.

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