So, as you can see, bitcoin is absolutely going "off the charts" (is there such a thing in ratio land?)! In a brief and unscientific attempt, I tie bitcoin (BTCUSD as priced in dollars) to Gold and compare prices at tops of each vehicle.
8/22/2011, the ratio was 1 oz of gold for every 136 units of bitcoin.
1/19/2015, the ratio was 1 oz of gold for every 6.73 units of bitcoin.
12/12/2016, the ratio was 1 oz of gold for every 1.47 units of bitcoin.
5/19/2017 (today) the ratio IS 1 oz of gold for every .64 units of bitcoin.
Astonishing? Maybe, maybe not!
So, this begs a few questions. 1. Is bitcoin OVERVALUED? 2. Is bitcoin OVERVALUED in comparison to gold or is gold UNDERVALUED in comparison to bitcoin? 3. Where is the dollar in this equation? Overvalued? Complete dog-crap? 4. Further... If silver is UNDERVALUED in comparison to gold, should you trade your bitcoin for silver?
I know, you're probably thinking to yourself, "Why was I NOT paying attention to story problems in high school math classes?" I hear you!
So, now what? Continue to hold bitcoin? Trade bitcoin? Comment below!!!!
The Maestro!
www.themaestroway.com