Commodities are typically split into different categories based on their use case.
We measure Bitcoin relative to both Gold and Silver given all three of these assets have a loyal following on die hard holders who hold the asset as a long term hedge against inflation.
As such, Bitcoin is useful when compared with these similar commodities in order to assess which has outperformed over various time frames.
We compare Bitcoin’s return relative to that of other commodities such as Silver or Gold because Bitcoin has a similar “store of value” use case.
We compare these two asset classes given both Gold and Silver investors typically hold these physical commodities as a long term hedge against inflation. Although Bitcoin is a non-tangible social construct, it possesses similar attributes to both of these commodities.
This information is for educational purposes only. Any Information found on this site is not to be considered financial advice.
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