Bitcoin Will Become Closer to Digital Gold – Coinbase
Bitcoin Will Become Closer to Digital Gold – Coinbase pushes the “Bitcoin as digital gold” narrative, in a blog post ahead of May’s upcoming halving event. After the May 2020 halving, mining rewards for each new block, mined approximately every ten minutes, will reduce to 6.25 BTC.
This will bring the supply issuance of Bitcoin to a rate of around 1.7% per annum. Stock-to-flow (S2F) is a measure of new supply rate over total supply and Coinbase notes that Gold’s stock to flow is higher than any other metal commodity and post-halving, Bitcoin’s S2F scarcity will be on a par with gold’s.
According to Coinbase’s blog post, “In 2013, one bitcoin could buy a mere .01 ounces of gold. At the time of writing, one bitcoin can buy over 5.5 ounces of gold, at a current Bitcoin price of ~$8.5k. Even compared to gold, bitcoin’s value has significantly increased this past decade. Bitcoin is scarce like gold. Producing new bitcoin requires a great deal of work (aka “proof of work”) by a process called mining. “