When we last checked in on the price of Bitcoin measured in milligrams of gold, in December, Bitcoin prices were in freefall after the People’s Bank of China banned the country’s financial firms from processing the currency.
At the time, the price of gold was also bottoming out and about to embark on a big comeback.
Today, we find ourselves in a similar bearish price environment for the digital currency, as one-time Bitcoin megaexchange Mt.Gox has apparently collapsed and is reportedly the subject of a federal probe.
Meanwhile, gold has rallied. It’s one of the best performing assets of 2014.
So it’s not surprising to see that Bitcoin, priced at $571 as of Wednesday afternoon is now worth even less in gold than it was a few months ago.
Many invest in gold because they fear the downfall of the dollar. Some buy Bitcoin for the same reason.
For what it’s worth, gold has recently acted as a safer alternative than Bitcoin.
Currently, 1 Bitcoin buys you just over 11 grams of gold.
Here’s the chart, from Charles Vollum and PricedInGold.com:
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