Bitcoin to Gold Ratio
Consider the Bitcoin to gold ratio. We will denote this by B/G. This is just the ratio of the spot price of Bitcoin to the spot price of gold at a point in time.
We will assume the average historical Bitcoin to gold ratio is B/G = 2, and therefore G = B/2.
Using the spot price of Bitcoin at the time of writing, we get $34,848.24/2 = $17,424.12 / troy oz for a gold valuation.
Note that this gold valuation also assumes the value of Bitcoin is not only greater than zero, but also constant.
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