Gold priced in BTC

[mmm....shiney!]

I've been looking at a few charts of assets priced in BTC see: Monitoring the Crypto Bubble

It makes sense to do so from my perspective as fiat is a constantly debasing metric. It also highlights visually any opportunity cost and is a useful indicator ofprice movement as well as identifying when an asset is in the buy zone when compared to BTC, or "over" or "under" valued.

Naturally the value of such charts are only as good as the process.

 

[spannermonkey]

Why bother ?
I don't understand / or want to understand the concept .
It's like trying to value something in fairy floss or something like that .
I'm simple panel beater , don't bother trying to explain it to me .
I get confused after 2

 

[mmm....shiney!]

The chart above indicates that relative to BTC, gold is "undervalued" but well below the buy zone.

This is useful because until gold breaks higher I'd be unsure whether its price would continue to track along at these low levels or not. The problem of course is the opportunity cost of investing in one asset class ie gold over another ie BTC if one is outperforming the other. Obviously there are other factors to consider but at the very least the POG has to put in some work over the next few months in order to steadily rise against BTC.

 

[mmm....shiney!]

Why bother ?
I don't understand / or want to understand the concept .
It's like trying to value something in fairy floss or something like that .
I'm simple panel beater , don't bother trying to explain it to me .
I get confused after 2

Cool, it'll save me a lot of time.

Edit to add: it really only matters if you invest in both asset classes.

 

[mmm....shiney!]

Conversely is BTC "overvalued" when measured in the POG?



That's a damn fine looking chart though.

 

[mmm....shiney!]

Alternatively, looking at the last 12 months only, which from a macro perspective is probably more interesting because at about that time The Fed was keeping rates on hold: