The oldest bank in the US, BNY Mellon, has just compared Bitcoin to gold. By the way, it cited a controversial valuation model, S2F, according to which 1 BTC should cost as much as $288,000 in 2021. BNY Mellon: Bitcoin is digital gold In a new report, the bank says that the supply and demand dynamics for the flagship cryptocurrency mirror those of the yellow metal. So far, Bitcoin seems to be interacting nicely with gold in terms of both supply and demand. With this in mind, we will use gold as a starting point to discuss potential valuation methods for Bitcoin - stated in the bank's new document. On this occasion, BNY Mellon cited the S2F model, which is traditionally used to value precious metals (e.g. gold), but was applied to Bitcoin by well-known analyst PlanB some time ago. Adding to this, as Bitcoin has a lower S2F, the model suggests that the cryptocurrency may even eventually surpass the market capitalization of gold: Commodities such as gold have the highest S2F ratios (over 50), meaning that it would take over 50 years to acquire the current gold stock. Bitcoin has a current S2F ratio of 20. This suggests, according to the bank, that BTC could eventually at least "reach the market capitalization of gold." The model may be flawed However, BNY Mellon analysts stress that the model they took into account may be flawed. In contrast, a day after the report was published, BNY Mellon PlanB asserted that it was confident in the S2F model: My confidence in the S2F model published in 2019 and S2FX of 2020 is high. It builds on the performance and achievements of S2F (X). (...) The model counts specific trades and recognizes bull / bear markets. You can always check the current exchange rate of Bitcoin and other cryptocurrencies in the tabs: bitcoin exchange rate and cryptocurrency exchange rate at bitcoin.co.uk. Places where you can buy BTC and other coins include the BitBay.net cryptocurrency exchange. If you don't have an account on BitBay yet, this article will show you how you can create one efficiently: LINK. Tags bitcoin BNY Mellon btc btc rate btc price
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