Bank of Singapore Says Bitcoin and Crypto May Replace Gold As Store of Value

The Bank of Singapore says Bitcoin and the crypto markets at large have the potential to create a new electronic standard for storing value that replaces gold.

The bank’s chief economist, Mansoor Mohi-uddin, told The National News that emerging digital assets have to survive a number of remaining tests to prove their longevity and reliability as a means to store wealth.

“First, investors need trustworthy institutions to be able to hold digital currencies securely. Second, liquidity needs to improve significantly to reduce volatility to manageable levels.”

Mohi-uddin cites Bitcoin’s massive price movements in the last 12 months and the fact that it plummeted alongside traditional assets in March of last year as two signs that it’s not yet a stable store of value.

“Bitcoin is highly volatile as its rally over the past year from $4,000 to more than $40,000 and then back towards $30,000 shows.

Bitcoin is also correlated with stocks and other risk assets rather than trading as a counter-cyclical safe-haven. In a financial crisis, cryptocurrencies are more likely to be dumped by investors during a market meltdown, as occurred at the start of the pandemic in March 2020.”

He doubts cryptocurrencies have any real shot at replacing fiat currency, but believes Bitcoin’s scarcity serves as a powerful contrast in the current era of rapid money printing and monetary stimulus.

“Governments are very wary of any technology that could potentially displace national currencies. This would reduce the ability of policymakers to print money during economic crises.”

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Follow us on Twitter, Facebook and Telegram

Check Latest News Headlines

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Who is Danny

The post Bank of Singapore Says Bitcoin and Crypto May Replace Gold As Store of Value appeared first on The Daily Hodl.

About the author