BTC is a digital commodity. GOLD is commodity as well. Every commodity has a scarcity parameters, which influence its price. One parameter which describes scarcity of a commodity is Stock-to-flow ratio (STF). STF = Stock (current supply) divided by Flow (annual production).
STF of gold = 190,000 ton/3,200 ton per year = 59 (approx., not fixed). Total supply not capped. STF of BTC = 19,500,000/164,250 = 118 (fixed by math). Total supply capped at 21M. So BTC currently has 2x STF ratio as GOLD, therefore it's got 2x scarcity of GOLD. Why TF ppls are selling BTC for GOLD?
Why BTC is lagging behind GOLD? It’s adoption IMO. GOLD has more than 5K years of track record of monetary store of value and medium of exchange. Plus GOLD has a lot of industrial applications, jewelry and etc.
BTC is just 15 years old, but it already got ETFs in most industrially developed countries. A small country El Salvador made BTC a legal tender. Another small Kingdom of Bhutan has state owned BTC mining operations equal to 1/3 of its GDP.
Adoption of BTC will play out faster from this moment, IMO.
Unlike fiat currencies, BTC has fixed inflation rate of 0,85% per year. It will be decreasing by half every 4 years. But it's not enough.
Adoption is the only thing that matters the most. The more BTC is used, the more it's needed. That's why 9 ETFs pumped BTC price so much, it's been a giant adoption step.
Scarcity, low inflation and other features of BTC are not enough.
IMF, Governments (not all, but majority at this point), old trad-fi, banks - these are the enemies of BTC adoption as they feel competition to their fiat scam monopoly.
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El Salvador methodically keeps stacking BTC. I think it's just the matter of time that more states will join.
Only 0.000594 BTC ~ 53$ per capita so far. It seems not much, but no other state in the world has more BTC per capita.
For instance USA got 0.000594 BTC ~ $33
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