The G7 member countries are unwittingly defending Bitcoin (BTC) as gold’s disadvantages become more apparent as a new initiative to ban Russian gold imports was recently approved.
The decision to ban gold imports from Russia was announced by the US, UK, Japan and Canada at the G7 meeting which started in Germany on Sunday. According to a UK government statement, the measure will be “global in scope, excluding the commodity from official international markets”.
And while analysts have said the move is mostly symbolic, given that the London Bullion Market Association (LBMA) already removed Russian gold refiners from a list of accredited companies in March, but it still shows that Bitcoin is a better asset on a global scale than gold.
According Anthony Pomplianopromoter and investor of Bitcoin, the decision to block Russian gold exports is just another step in a “militarization of currencies”.
“[…] this is another major step in the decades-long trend of attempts to use currencies for military purposes by developed nations leading to the degradation of confidence in those same currencies,” Pompliano wrote in his newsletter. Monday.
Pompliano then quotes Danny Diekroegera software engineer at the company Cash App of Jack Dorseywho said the move could make physical gold much more difficult to obtain in Western markets, which could lead to a price divergence between paper gold and physical gold.
“Even a bitcoin maximalist like me can see this potential shock to gold markets, and I can’t help but ride the wave. sell for bitcoins when the panic sets in,” Diekroeger said.
Mr. Pompliano added that if this scenario plays out, Bitcoin will likely be history.
“If Danny’s theory holds true, there will be ramifications for Gold, Bitcoin, and various fiat currencies,” he wrote.
An advertisement for Bitcoin
Commenting on the situation on Reddit, several users pointed out how this ban actually functions as an advertisement for Bitcoin, which, at its core, is designed to be censorship-resistant.
“It’s as if the [Forum économique mondial] was guiding Russia to Bitcoin step by step,” wrote one user, while explaining that Western countries have now “turned [la Russie] of all fiat networks”.
“Stand the gold at the border, but let the oil flow,” the user added of the paradox of importing Russian energy while having few, if any, traditional means of payment available to pay for it .
Others seemed to agree, with one user pointing out how the G7 ban is just another step on the path to weaponizing the US dollar and other fiat currencies.
“Wow. First they freeze their dollar reserves, now they make gold imports illegal,” the user wrote.
Since the start of the war in Ukraine on February 24, gold is down more than 4%, while BTC has fallen 44%.
Bitcoin (blue line) and gold (orange line) since the start of the war in Ukraine:
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