Throw a stone into the pond. This is what just did Randy Smallwood, the president of the World Gold Council, namely the world’s main gold lobby. While Bitcoin is often considered by its fans and its defenders like digital goldthis specialist in gold issues affirms that once the gold is tokenized, “Bitcoin will no longer be useful”. The reasoning is also rather logical, even implacable. Indeed, with a digital currency backed by physical reserves of gold, no one will want to use “something that has no value and is just a promise”. Are you not convinced ? We neither. But let’s leave the floor to this gentleman all the same!
Of course, when the representative of a lobby speaks, it is important to understand that he is defending the interests of his sector above all, as crypto advocates regularly do. THE World Gold Council is an organization that works “in all areas of gold, from mining to investment with the aim of stimulating and sustaining demand for physical gold around the world”.
Now that we know where we’re talking about Randy Smallwood, let’s hear what he has to say. In a recent interview given to Kitco News, a media also specializing in precious metals, he delivered his share of the truth on the yellow metal at a time of blockchain and major international maneuvers around the dollar.
First, he acknowledges that thegold continues to establish itself as a global store of value and that it still attracts new generations of investors. In a context of uncertainty and great volatility on the markets, he is pleased that his favorite metal remains a refuge through time.
Despite a year 2022 marked by mixed performance, gold should regain its luster in the years to come, reinforced by its digitization – its tokenization – which should stimulate demand. But its best punch line is coming and we’ll deliver it to you Verbatimwe liked it so much:
“Bitcoin is the promise of something that is not backed by anything. It has no real value. Once tokenized, gold will therefore make it obsolete. »
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“Tokenized Gold Could Make Bitcoin Obsolete”
He continues his argument by explaining that the world currently needsa gold-backed currency which could be traded freely and easily through the blockchainbefore concluding with a final sentence:
“The world is ready for a digital currency backed by the promise of real value. »
After having tailored a suit to our favorite crypto, he will then indulge in other remarks on the current state of currencies and more particularly of the king dollar who, according to him, bright days ahead. Despite the obvious emergence of new powers gathered around the BRICS (Brazil, Russia, India, China and South Africa), the dollar remains – and will remain – for him the main reference currency in the world. For what ?
“Because of the world’s currencies, the dollar is most strongly backed by gold. Moreover, China has understood this. And this is one of the reasons why it continues to accumulate gold reserves with its central bank. »
He will conclude by affirming that if a currency wants to compete with the greenback, it will have to accumulate a lot of gold, which will not fail to be seen and to arouse the curiosity of observers. And among them, he cites young people and millennials who are beginning to understand the interest of the yellow metal.
Even if the message is a little outrageous towards Bitcoin, it must be recognized that the gold tokenization is a real stake years to come. Indeed, while the Russians are thinking about a currency of this type, American financial giants see it as a colossal market to come. Bitcoin versus physical gold? The battle has only begun.
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