According to the popular cryptograph Nick Szabo, Central Banks can resort to crypto currency reserves to support national gold reserves. The industry expert also thinks that countries with troubled economies will see an increase in the use of crypto currency.
Failed Economies Crypto Money Increasing the Demand of the Unit
Nick Szabo, who attended the Israel Bitcoin Summit at Tel Aviv University on January 8, put forward his views on the crypto currencies and their position in the traditional economies.
Bitcoinas well as censorship-resistant crypto currencies will see increased demand in countries where economies are deprived of failed financial practices. The same thing will happen in countries blacklisted from international trade.
In particular, towards the end of the summit, it was evidence that he was saying these words.
A few days ago, Vladislav Ginko, a Russian university lecturer with ties to the government, said the country plans to invest in Bitcoin to overcome US sanctions.
“Due to US sanctions, the elite of Russia is forced to abandon US assets and the US dollar and invest heavily in Bitcoin. The Russian central bank has a reserve of $ 466 billion, but needs to be diversified if there is a limited number of opportunities to do so (in the future). Best suited for this diversification Bitcoin looks like.Inko - Ginko said.
Is it better than gold?
In addition, Szabo states that Central Banks will eventually return to the reserves of the crypto currency as a means of supporting national gold reserves.
Experts believe this would be due to a lack of confidence between foreign governments:
Olabilir For example, there may be cases where a central bank cannot rely on a foreign central bank or government bonds. A developed solution is for the Swiss government to hold for you - this is not a trusted solution. The Swiss government itself is subjected to political pressures, and therefore the confidence that has been reduced to a lesser extent is a less reliable solution than that of crypto money. İsviçre
In addition, Szabo referred to another valid point, which indicates that gold is technically vulnerable, for example, that bitcoin is safer than gold.
Source: Livebitcoinnews