World Gold Council: Bitcoin is inferior to gold, but may shake the central bank’s position

nWalkout comment: The World Gold Council recently released a new investment report detailing its view of cryptocurrencies, such as bitcoin, which is so prevalent today. The group acknowledged bitterly rising bitcoin prices in the past year, but also pointed out that its high risk, not a good investment choice, the gold is still unshakeable advantage. At the same time, the group also said that cryptocurrencies could have a tremendous impact on the banking system, subverting the central bank’s leadership in the financial sector and praising the role of blockchain technology, admitting that the gold market participants are also exploring the technology.n
nTranslation: Inan
In its January 2018 investment report, the World Gold Council pointed out that although the price of gold achieved a significant 13% rise in 2017, the value of Bitcoin has increased 13 times.n
However, the group also pointed out that gold is a better investment choice and that the risk of cryptocurrency is too high.n
n”Cryptocurrencies may be part of the financial system, but gold, in our view, is very different from cryptocurrencies, because gold: less volatility; more liquid markets; trading within established regulatory frameworks; investing in There is a definite role in the portfolio, which differs from cryptocurrencies in many aspects, such as supply and demand. “n
nAt the time of the release of the report, there was a clear rebound in the price of bitcoin, which was caused by the stringent regulatory measures in South Korea.n
It is noteworthy that the World Gold Council has declared that its goal is “to stimulate and sustain the demand for gold, provide industry leadership and become the gold authority of the global gold market,” so it is unlikely that Bitcoin will be considered viable investment.n
In particular, the World Gold Council pointed out that the price of bitcoin fluctuates by an average of 5 percentage points per day, saying the situation “is not in line with the characteristics of the currency and does not even amount to a stored-value asset” and is therefore suitable only for “investors seeking high returns.”n
The report also said that as a result of unexpected regulatory measures in some countries making bitcoin a dangerous investment, it also pointed out that the major cryptocurrency has a disruptive effect on the existing banking system.n
n”Monetary policy is an important tool for today’s central bank.If people choose to trade in cryptocurrencies rather than legal currencies may undermine the role of monetary policy and undermine the central bank’s tools for influencing the economy and urge the government to make these Product regulation. “n
nThe group also firmly denied that the price of gold is directly affected by the demand for cryptocurrencies, noting that Bitcoin may suffer “disruptive effects” from other cryptocurrencies.n
Although the World Gold Council does not consider bitcoin a stable investment, it believes the underlying technology behind the cryptocurrency has a bright future and even hopes to turn gold into a “digital asset” in the private chain.n
n”Blockchain technology is a distributed ledger mechanism that supports cryptocurrencies, such as bitcoin, and is truly innovative for a wide range of applications in financial services and other fields. In the gold market, various players are exploring blockchain In the hope of turning gold into ‘digital assets’, tracking the source of gold in the supply chain and increasing the efficiency of post-transaction settlement processes. “n

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