Bitcoin could replace gold: Bank of Singapore

Bankers are some of their most vociferous critics of bitcoin within the last ten years, but that attitude has been changing lately. The most recent institution to heat to Satoshi Nakamoto’s production is that the Bank of Singapore.

The private establishment considers bitcoin along with other cryptos can replace conventional safe-haven resources such as gold, based on its most recent research note.

‘First, traders want trusted institutions to have the ability to hold digital monies securely. Secondly, liquidity should improve considerably to decrease volatility into manageable amounts,’ Mr Mohi-uddin explained.

‘Bitcoin is exceptionally volatile as its rally within the last year from $4,000 to over $40,000 and back to $30,000 shows. Bitcoin can also be connected with shares and other risk resources instead of investing because a counter-cyclical safe-haven. In a fiscal disaster, cryptocurrencies are somewhat more inclined to be dropped by investors throughout a market collapse, as happened at the onset of the pandemic in March 2020.’

Even though bitcoin dropped dramatically at the onset of the pandemic, it immediately prevailed, emerging as among those best-performing resources of 2020.

The Bank of Singapore note stated bitcoin wasn’t viable as a substitute for conventional fiat currencies such as the US dollar due to its infamous volatility and authorities’ tendency to guard their financial sovereignty.

‘Authorities are extremely cautious of any technologies that could reestablish national monies,’ Mr Mohi-uddin explained.