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.