Gold not Bitcoin would be the first choice to look to when it comes to reviving the global economy, hints De Nederlandsche Bank, the central bank of the Netherlands.
The bank has recently mentioned that the Gold reserves can be utilized in order to restart the economy in case the global economy collapses.
Dutch Central Bank: “If the whole system collapses, the gold reserve can serve as collateral to start from scratch.” https://t.co/5OxwXo6Drc
— Tuur Demeester (@TuurDemeester) October 12, 2019
These statements are being made at a time when the US Federal Reserve is arriving at yet another quantitative easing.
Recently, the US Federal Reserve lowered its rate of interest up to a little over two percent (2.25%) and it began pouring funds into overnight repo facility, in order to ease the rates on the interbank overnight lending. All these efforts tend to show that the inflow of the fiat currency is quite significant.
It has been observed that the central banks all over the world have increased their purchase of gold in the past few months. Gold has had always been important for the central banks, however; now the significance of Gold has increased to many folds.
Gold not Bitcoin debatable? Gold and Bitcoin competition
Turkish Central bank and the Russian central bank were the leaders in terms of gold purchases this year.
It is also worth noting that both the states are also quite open to the crypto assets. Moreover, both countries are familiar with the phenomena of local-inflation. Currently, Turkey is experiencing the shaky exchange rate for its currency lira, whilst the Russian economy still has the imprint of the hyperinflation the occurred after the Soviet Union’s collapse.
In the last quarter, the value of Gold increased from twelve hundred dollars to over fifteen hundred dollars ($1200 to $1500) per ounce. Simultaneously, the Bitcoin price dropped up to thirty percent (30%), however; Bitcoin still managed to outpace Gold in terms of gains in 2019, by increasing over two hundred percent (200%) in the same period.