Is Corona plunging gold markets into chaos?
As soon as the gold reserves have been bought up, according to Keizer’s argument, only Bitcoin remains as an alternative
Keizer refers to a Bloomberg report dated March 25, which said gold markets were “facing unprecedented chaos” as demand suddenly exploded. As Cointelegraph had reported, the precious metal has so far fluctuated sharply in the current year. While lows of $ 1,469 were still on the tableau two weeks ago, it has since skyrocketed to $ 1,629, a week-high 10.9% increase.
The toilet paper for the rich?
However, gold has a number of disadvantages compared to Bitcoin. In contrast to cryptocurrency, for example, the precious metal is difficult to move and often has to be kept by a third party. In contrast to Bitcoin, the precious metal cannot be determined in real time whether a gold piece is genuine or not. In addition, gold has a problem that affects many assets with the exception of Bitcoin. The higher the price, the greater the effort people make to increase the quantity in circulation.However, as Saifedean Ammous explained in his book “The Bitcoin Standard”, Bitcoin’s circulation volume cannot be increased, even if the efforts in mining the cryptocurrency increase, the difficulty automatically increases to the same extent.