Due to coronavirus, an unprecedented problem has been experienced in the gold market for a few weeks. We have already mentioned this in an article we shared today and talked about how helpless the jewelers were. If you have not read these articles, let’s summarize the situation as follows:
People started looking for a “safe harbor” and turned to gold because of the coronavirus. However, because of the coronavirus, gold refineries in Switzerland were quarantined and flight flights were canceled. When the expeditions were canceled, ‘physical’ gold (ingots) could not be transferred to London and New York. Goldsmiths in these regions have become unable to find enough gold to meet the growing demand.
We Call Digital Gold
Today, a group of people say that Bitcoin is digital gold, that people can use Bitcoin as if they were using gold. Of course, there are certain similarities (such as limited supply) and major differences (volatility) between bitcoin and gold. However, there is a difference between these two things that overshadow everything else: Gold is physical, Bitcoin is digital.
As we just mentioned, people are having a hard time finding gold bullion at the moment because it is very difficult to physically transfer these gold. As you know, Coronavirus. But this is not the case with Bitcoin. People can still use Bitcoin (even without the Internet). whether any Bitcoin users living in Turkey can send money within seconds whether Beijing to London.
Safe Harbor Subject
People see gold as a safe haven, but recent events (see difficulty in accessing gold) brought people the following question: ‘What is it to me from the port I could not shelter?’
Max Keizer, one of the well-known names in the crypto money world, draws attention to this issue exactly. According to Keizer, when the moment of crisis comes and goes, the rich will turn their money into gold and will not find a port to ‘take refuge in this port’, while the poor will not find a port to take refuge. Because that port will have already filled the yachts of the rich.
Keiser thinks that Bitcoin will be activated at this point. According to Keizer, when people cannot find gold to buy, they will start taking refuge in Bitcoin. His statement on the subject is as follows:
“I think people will start flocking to Bitcoin as soon as they realize they can’t buy gold.”