Gold not Bitcoin would revive global economy, Dutch Central Bank hints

Gold e1570983088593

Gold not Bitcoin would be the first choice to look to when it comes to reviving the global economy, hints De Nederlandsche Bank, the central bank of the Netherlands.

The bank has recently mentioned that the Gold reserves can be utilized in order to restart the economy in case the global economy collapses.

 

These statements are being made at a time when the US Federal Reserve is arriving at yet another quantitative easing.

Recently, the US Federal Reserve lowered its rate of interest up to a little over two percent (2.25%) and it began pouring funds into overnight repo facility, in order to ease the rates on the interbank overnight lending. All these efforts tend to show that the inflow of the fiat currency is quite significant.

It has been observed that the central banks all over the world have increased their purchase of gold in the past few months. Gold has had always been important for the central banks, however; now the significance of Gold has increased to many folds.

Gold not Bitcoin debatable? Gold and Bitcoin competition

Turkish Central bank and the Russian central bank were the leaders in terms of gold purchases this year.

It is also worth noting that both the states are also quite open to the crypto assets. Moreover, both countries are familiar with the phenomena of local-inflation. Currently, Turkey is experiencing the shaky exchange rate for its currency lira, whilst the Russian economy still has the imprint of the hyperinflation the occurred after the Soviet Union’s collapse.

In the last quarter, the value of Gold increased from twelve hundred dollars to over fifteen hundred dollars  ($1200 to $1500) per ounce. Simultaneously, the Bitcoin price dropped up to thirty percent (30%), however; Bitcoin still managed to outpace Gold in terms of gains in 2019, by increasing over two hundred percent (200%) in the same period.

Aroosa Nadeem

Aroosa Nadeem

A media graduate and passionate media person Aroosa has a knack for digital media journalism and outreach. She has contributed content to different digital media publishers in a variety of areas including technology, health and finance.

Related News

Hot Stories

Dogecoin price analysis: DOGE/USD set to break above $0.1 soon?
Ripple price analysis: XRP/USD set to break above the $0.5 resistance
Cardano Price Prediction 2022-2030: Is ADA a good investment?
Dogecoin founder says 95% of cryptocurrencies are ''scam and garbage"
Ukraine war and Bitcoin plunge exposes crypto as no hedge against equities

Follow Us

Industry News

The Pussyverse: How cryptocurrency Could tackle gender inequality in finance
MiamiCoin and NewYorkCoin plummet over 85% despite Mayoral endorsements
Cloudflare grants public access to Ethereum and IPFS gateways
Coinbase slows down hiring plans after Q1 losses
Korea's authorities open investigation into TerraUSD collapse