The price of gold has seen some propping up recently due to extensive hoarding by central banks. According to NewsBTC, China and Russia in particular have been major purchasers of the shiny metal in order to diversify their reserves amid ongoing sanctions and a trade war with the United States.
With hard assets in such high demand, it has been speculated that cryptocurrencies like Bitcoin and altcoins could be deemed hard assets by central banks all over the world.
The group’s representative indicated that restrictions imposed on China in its trade war with the U.S., together with economic sanctions on Russia, will force the two countries to diversify their reserves more than ever before.
“Also, with increasing political and economic uncertainty prevailing, gold provides an ideal hedge, and will therefore be sought after by central banks globally,” he said.
According to Bitcoin supporters, the top virtual currency seems to win over gold in every aspect that makes gold popular as an asset of wealth. First, Bitcoin has a definite supply to ensure that it cannot be inflated, while the value of gold may decrease sometime in the future when we possess technology that gives us convenient access to uncharted gold deposits, both on earth and in space.
Bitcoin is also much easier to transport, store and trade. As a rather new asset in the finance space, it only needs more time to gain public trust as a store of value.
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