







On May 1 Grayscale, a digital currency investment firm, unveiled their first national TV spot called “Drop Gold.” It was a Bitcoin promotion designed to show investors how antiquated gold had become as a scarce store of value. The idea was to promote Bitcoin as a store of value for the 21st century. So almost 90 days after launch, how has the broader investment community reacted to gold and Bitcoin?





Since May 1, Bitcoin prices have doubled. In fact, only 3 days after Grayscale launched their ‘Drop Gold’ campaign, Bitcoin prices were already up over 8%. This rise continued through May, corresponding with Consensus spurring investor interest, and through June as Facebook’s cryptocurrency plans ignited further interest in the cryptocurrency space.





Even the recent pullback in prices hasn’t been enough to slow down Bitcoin’s rise this spring. But how has gold done in comparison? Within the first 3 days of Grayscale’s campaign, gold prices were relatively unaffected — moving upwards by less than 1%. Since then, gold has seen a steady up-tick in prices thanks to the increasing volatility and uncertainty in global financial markets.





We have pointed out how in recent months, Bitcoin has become more correlated with gold. While gold’s move upwards has occurred in tandem with Bitcoin’s rise, the rise has been far less significant. Even today, almost 3 months after Grayscale’s Drop Gold campaign, gold prices are up only 11% compared to 100% for Bitcoin. And while it’s impossible to fully attribute the exact effects that Grayscale’s campaign had on the prices of Bitcoin and gold, it’s undoubtedly valuable for Bitcoin to have national exposure from a trusted investment fund like Grayscale.





Even when price considerations are left out, Bitcoin has seen a number of major awareness milestones since Grayscale’s campaign. President Trump has now tweeted about Bitcoin, US Congress has held multiple days of cryptocurrency-related discussions, and the Federal Reserve chairman has made comments about the digital currency. Whether prices go up or down next, Grayscale’s Drop Gold campaign and efforts by many others in the industry have got people talking about Bitcoin again.







