Bitcoin Undervalued by 10x Compared to Gold, Says Analyst PlanB Highlighting Bitcoin’s Superior Scarcity

PlanB, a renowned crypto analyst, recently highlighted on the X platform that the current market capitalization of gold stands at approximately $20 trillion, while Bitcoin’s market cap is near $2 trillion. This comparison underscores that gold’s market value is roughly ten times greater than Bitcoin’s. However, when examining scarcity through the stock-to-flow ratio, gold registers around 60, whereas Bitcoin’s scarcity metric is double, at about 120. This significant difference in scarcity suggests that Bitcoin possesses a higher intrinsic value relative to its supply constraints. Based on these metrics, PlanB posits that Bitcoin is currently undervalued by at least a factor of ten, emphasizing its potential as a scarce digital asset. Such insights provide investors with a quantitative framework to assess Bitcoin’s valuation against traditional stores of value like gold, reinforcing Bitcoin’s emerging role in diversified portfolios.