A lot of central banks all over the world hold gold, and most of them even lock their gold in government vaults. They usually hold gold as a reserve asset to hedge against times of market unrest and for times when they need to quickly liquidate their assets.
Gold is one of the fastest moving assets in the market. But the liquidity of gold is currently being threatened by a different kind of gold which is known as Bitcoin (BTC). Bitcoin (BTC) is referred to as the 21st-century digital gold. This is because its demand is constant and it adopts the most revolutionary blockchain technology and cryptography technologies.
Central Banks Could End Up HODLing BTC as a Natural Reserve
It wouldn’t come as a surprise to know that some governments are holding Bitcoin (BTC) as part of their assets. The reason is that any insightful investor that sees the potential of the digital currency would want to grab some of it before its value flies to the moon. As a result of this, governments and individuals are looking to stash the digital currency.
Bitcoin is indeed a digital gold, and there are lots of sentiments about Bitcoin replacing Gold in the future. A similar sentiment was expressed by Bill Miller – a billionaire investor.
Bill Miller said if bitcoin BTC becomes highly valuable, then various central banks are more likely to think of the BTC as another potential asset just the way they see and hold gold. He added that this will expand the market of Bitcoin and other digital currencies more significantly.
Bitcoin (BTC) Price Today – BTC / USD
At the time of writing, Bitcoin (BTC) was trading at $7,350 after losing about 3.5 percent of its value over the past twenty-four hours. The market cap of the digital currency is $130.18 billion and its trading volume over the past twenty-four hours is $4.43 billion.