Is Bitcoin Following An Explosive 1970s Gold Fractal?

As a self-proclaimed cryptocurrency enthusiast, I can confirm that Bitcoin is hot right now. But what does the future of this digital gold hold? Is there anything we can learn from its past to give us an insight into its future?

Enter the 1970s gold fractal. It’s been suggested that Bitcoin’s wild success could be mirrored by the explosive “gold rush” of the 1970s. Let’s take a look at the facts, and see if we can spot any parallels.

The Facts About The 1970s Gold Rush

In the mid-70s, the price of gold skyrocketed as a result of financial integration and geopolitical turmoil. After the ending of the Bretton Woods system, gold became the go-to safe haven asset, and soaring gold prices were the result.

Here are some stats and facts that demonstrate the scale of the “gold rush”:

The Tripling of Prices – Average gold prices more than tripled between 1975 and 1980, from $68 to $220 per ounce.
A Blueprint for Wealth Creation – The gold rush made many people incredibly wealthy, especially gold miners and speculators.
Rising Gold Trade Volume – As gold prices rose, the global trade volume of gold increased exponentially.
A Financial Revolution – The gold rush was unprecedented, and changed the face of global finance.

So, where does Bitcoin fit in?

The Bitcoin Bubble

We’re all aware of the massive growth of the cryptocurrency market over the past few years. From an all-time low of $500 in 2016, the price of Bitcoin skyrocketed to an ATH of almost $65,000 in April 2021.

It’s certainly clear that Bitcoin has behaved in a very similar way to gold in the 1970s. But is that pattern set to continue?

The Future of Bitcoin

There’s no doubt that Bitcoin is an exciting asset, and it’s not going anywhere any time soon. It’s also true that at current prices, it may be too late to invest in BTC and make massive profits. However, those who buy in now and hold for the long-term could still be looking at the next legendary gold rush.

So, is Bitcoin following an explosive 1970s gold fractal? Yes, it certainly seems that way. The only question that remains is: will Bitcoin live up to its promise as an investor’s paradise? Only time will tell.