If the financial system collapses, the world will need gold

The money will be losing their positions in competition with gold during the next financial crisis. Or at least that such a scenario admit the representatives of the Central Bank of the Netherlands. In De Nederlandse Bank (DNB) advised to bet on the precious metal. In this famous cryptoendoliths is the instruction better: your capital should be reserved for “digital gold”.

Maybe its better to buy Bitcoin?

Usually, gold is supposedly “a reliable anchor for the financial system”. Below is a quote from the Bank.

If the whole system collapses, the gold reserves will provide the collateral for the new start. Gold gives confidence in the power of the Central Bank. And it provides a sense of security in the economy.

It is known that Central banks started to buy gold following the financial crisis of 2008. The above statements of the representatives of the DNB has caused particular concern among supporters of Bitcoin.

Source: 2Биткоина

Being a “sound money” with the highest ratio stock-to-flow, gold had previously provided stable functioning of the economy. Then the government abandoned the Bretton woods system and moved from ensuring the precious metal to free trade currency. Since, as noted by the Sayfiddin AMS in his popular book “The Bitcoin Standard” in most countries, there are signs of a declining economy.

Recall that the indicator of Stock-to-flow specifies the ratio of asset reserves to the magnitude of its emissions — that is, the release of new items. It allows you to determine the abundance or scarcity of the asset in the market.

Managing digital assets VanEck Gabor Gurbaj not agree with this position. He believes that the national currency should have competitors.

I firmly believe that private money has on our world. Private money should be able to compete in the free market with the money of Central banks.

That is, he including advocates for the promotion of Bitcoin. So in the event of a crisis, banks can also experiment with cryptocurrencies.

Billionaire Mike Novogratz in an interview with CNN said that the difficult economic situation will be good for gold investors and Bitcoin. Ordinary people will try to protect their capital, so will send the finances in a relatively independent assets. Confirmation of this theory is already Venezuela, the demand for money which is very large. Read more about making coins around the world read in this article.

It should be noted that cryptocurrency, in this case, it will delight its customers huge profits.

In favor of long-term growth rate of Bitcoin talk and other factors. But most importantly — real results cryptocurrency. Recall that in the ten years of its rate rose to 838 million percent. Gold doesn't do that.

Are you ready to make a bet on Bitcoin? Join our cryptodata millionaires and tell us about it there.


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