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Learning & News => News related to Crypto => Topic started by: MUGNIA on May 18, 2019, 01:20:00 AM
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History Shows Reserve Currencies Come & Go, So, Central Banks Stockpile Gold, Is Bitcoin Next On The List?
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History Shows Reserve Currencies Come & Go, So, Central Banks Stockpiling Gold, Is Bitcoin Next On The List?
Central banks and foreign governments buying gold at the fastest pace in six years
US Dollar’s days as a reserve currency are numbered
Just a decade old, Digital gold – Bitcoin could emerge as a global reserve currency
Recently, we reported how the World Gold Council in its quarterly report highlighted that central banks and foreign governments around the world are hoarding gold at the fastest pace in six years.
This says a LOT about not just the value of the yellow metal but also the future of the US Dollar.
Central banks and governments that used to pile up trillions of dollars in reserves have now switched to gold. As the World Gold Council report shows us, central banks are buying more gold than previous years. Net gold purchases in Q1 of 2019 has been about 70% more than in Q1 of 2018.
China is leading this race along with Russia, Qatar, Turkey, and even Colombia by diversifying into gold.
The primary reasons for stockpiling US Dollar has been because it has been a global reserve currency for seventy-five years and big institutions use government debt as a form of money and US debt is the most liquid market in the world.
However, with the US federal government debt reaching $22 trillion, adding $1 trillion each year puts a serious impact on its ability to repay obligation to foreign creditors. Per the Federal Reserve's own financial statements, it is close to insolvency. Additionally, the escalating US trade wars put pressure on the dollar.
The Days Of The US Dollar Are Numbered
Historically, reserve currencies come and go. Reserve currencies go all the way back, as decades before it was British pound then Dutch guilders among others. Today, it’s US dollar.
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more complete: https://bitcoinexchangeguide.com/history-shows-reserve-currencies-come-go-so-central-banks-stockpile-gold-is-bitcoin-next-on-the-list/