Bitcoin $109,325.32Peter Schiff, known for his critical approach, brought up the comparison between Gold and Bitcoin with a recent social media sharing. Schiff draws attention to the reserve preferences of the central banks, argued that gold is in a superior position against Bitcoin. This assessment accelerated the ongoing debate between crypto currency and precious metals.
Safe port status of gold
Peter Schiff said in a statement that gold continues to be seen as a traditional and safe port. Schiff said that the central banks around the world turned to gold while reducing the dollar reserves.
Another point that Schiff emphasized was that Bitcoin was launched as the presence of the future, but the state’s official money reserves were still preferred. According to him, many countries prefer gold while aiming to reduce their dependence on US dollars.
Peter Schiff: If gold past and Bitcoin will come, why do foreign central banks preparing for the future change their dollar reserves with gold instead of Bitcoin?
Elements that shape the preference of central banks
Central banks consider various criteria in reserve preferences. Gold, a traditional investment tool, stands out with its liquidity and low volatility. It is also effective in choosing the use of gold as a conservation element historically.
On the other hand, although Bitcoin and similar crypto assets draw attention with their decentralized and technological infrastructures, it is not among the main reserve preference of the central banks. Discussions about the level of volatility, regulation deficiencies and long -term reliability of crypto assets cause central banks to approach these assets.
Although some central banks have recently begun to show interest in digital assets, experts think that the dominance of traditional assets continues in most of the reserves. This trend makes gold stand out for now.
Before the conclusion section, Schiff’s evaluations contributed to the discussion of the reserve preferences of the central banks. Although crypto assets have started to take more roles in the financial system, it is observed that traditional asset choices are at the forefront in the safe port preferences of institutions. Bitcoin is needed to spread in corporate reserves.
The reserve policies of the central banks may vary depending on developments in the global economy and financial innovations. Gold stands out with its historical reliability, while Bitcoin’s volatility and regulation deficiencies continue to be decisive in official reserve preferences. Investors and economic circles closely monitor the future strategic moves of the central banks and discuss the impact of possible changes in politics on economic balances.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
