Gold is now worth over $11 trillion

The most common way to reason Bitcoin’s undervaluation is to compare its market capitalization to that of gold. This makes sense as gold is Bitcoin’s most aspirational asset. What’s less discussed is how gold’s market capitalization is a moving target, which moves Bitcoin’s relative upside to gold as well. The good news for Bitcoin holders is that the total market value of gold recently breached $11 trillion.

Bitcoin and gold are brothers in arms in the coming years, which is good if you believe what many legendary investors are saying about gold. Paul Singer for example stated in an April investor letter that the fair value of gold in our current macroeconomic environment is “literally multiples of its current price” and “one of the most undervalued investable assets existing today”.

No one can predict the future, but if these investors are correct, the market size for non-sovereign stores of value could be expanding dramatically in the coming years. This is good for Bitcoin.