Analyst Willy Woo believes gold will likely continue to outperform Bitcoin (BTC) for years to come.
Woo tells his 1.2 million followers on X that BTC’s 12-year uptrend against the precious metal has been broken.
He believes it’s due to concerns that quantum computers could eventually break BTC’s cryptographic security.
“12-year trend broken. BTC should be valued a lot higher relative to gold. Should be. It’s not. The valuation trend broke down once quantum came into awareness.
Don’t read this post if you want to stay high on hopium instead of seeing things as they are.”
Woo says Bitcoin could undergo upgrades to defend against quantum computers. However, he thinks it’s likely that quantum will be able to crack the wallets of Bitcoin’s anonymous creator Satoshi Nakamoto and early investors, who lost access to millions of BTC after misplacing their private keys.
“Likely, BTC will be patched with quantum-resistant signatures. This doesn’t fix the issue of four million lost coins coming back into circulation. I’d say it’s 75% chance that lost coins will not be frozen by a protocol hard fork…
The market has started pricing in the return of these lost coins ahead of time. This process completes once the ‘Q-Day’ risk is off the table. Until then BTC/USD will price in this risk. Q-Day is five to 15 years away. That’s a long time trading with a cloud over its head…
Unfortunately, the next 10 years are when BTC is most needed. It’s the end of the long-term debt cycle, it’s where macro investors and sovereigns run to hard assets like gold to shelter from global debt deleveraging. Hence, gold moons without BTC.”
Bitcoin is trading at $67,588 at time of writing, down more than 20% year-to-date.
Meanwhile, gold is trading at $4,880 per ounce at time of writing, up more than 12% since January 1st.
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