Bitcoin Just Became More Valuable Than Gold for the First Time

BERLIN, GERMANY - DECEMBER 06: A close-up view of an illustration model of a Bitcoin is seen on December 6, 2013 in Berlin, Germany. Central bankers around the world have warned about the virtual currency bitcoin. Prices have soared as more merchants accept it as payment and investors are pouring money into new bitcoin-related ventures. (Photo by Thomas Trutschel/Photothek via Getty Images)

(Thomas Trutschel/Photothek via Getty Images)

In addition to Snap’s massive IPO, yesterday was a historic day for the markets in a more subtle way. For the first time ever, the price of one Bitcoin, the popular cryptocurrency, was more valuable than one ounce of gold, Bloomberg reports.

At 7:30 a.m., Bitcoin was trading above $1,292.71 while an ounce of gold was trading for $1,226.89. Despite a recent surge in bitcoin and a rough week for gold, trading patterns had been trending towards this parity for some time. In the last year, Bitcoin’s value has more than doubled while gold has continued to trade at the same value.

BREAKING: The Price of Bitcoin is Now Worth One Ounce of Gold https://t.co/pewFXncB54 pic.twitter.com/cGH9E3al72

— CoinDesk (@coindesk) March 2, 2017

Still, the trend is notable since gold has been historically been viewed as the more stable alternative asset, which investors use to hedge against possible losses elsewhere. Bloomberg attributes Bitcoin’s surge to stricter regulations in countries like India, China, and Venezuela. It could also be due to the approaching March 11 SEC ruling on a Bitcoin ETF, which would make it easier to invest in the cryptocurrency.

—RealClearLife