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Here is How Central Banks will End Up HODLing Bitcoin (BTC) Like they Hold Gold

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Many central banks across the globe hold gold. As a matter of fact, most of the gold is locked up in government vaults all around the world. These governments hold gold as one of their reserve assets to hedge against periods of market unrest and for periods when they need to liquidate their assets quickly. Nothing moves faster in the markets than gold. But its liquidity is being threatened by another form of gold that is known as Bitcoin (BTC).

Yes. Bitcoin has often been referred to as the digital gold of the 21st century. Reason being that it is in constant demand and it embraces the most revolutionary technologies of cryptography and blockchain technology. One can claim that it is all hype and mania, but the current Bitcoin rush can be compared to the Gold rush that led many Americans to look West to California in the 1800s. The current price predictions of BTC are as high as $500k by 2024.

So, could central Banks end up HODLing Bitcoin (BTC) as part of their national reserves?

On an honest note, it would not be a surprise if we found some of the prominent governments holding some of their assets in Bitcoin. Sure, they would not admit it. But any shrewd investor who sees the potential in BTC would want to grab some before its price goes up to the Moon. This is primarily due to the fact that we already know that the amount of BTC to be minted is 21 Million. This means it is finite.

Over 80% of the total of 21 Million BTC in Satoshi’s whitepaper has already been mined. Utilizing the common economics theory of supply and demand, as BTC becomes more popular, so will its price. Therefore, individuals and governments will be looking to stockpile the digital asset. The last BTC is calculated as being mined in 2145 so there is a lot of time for its price to continue to skyrocket. BTC is indeed digital gold.

Similar sentiments of BTC replacing Gold have been expressed by billionaire investor Bill Miller who was quoted as saying:

“If it becomes much more valuable its then likely that various central banks begin to think of it as another potential asset just like they hold gold. That would open up the market extremely significantly.”

Miller, who has put in about 1% of his liquid net worth on Bitcoin, thinks of the digital asset as a non-correlated asset that can be compared to gold. He noted that BTC is easily more transportable than gold and can actually be used to buy things. This observation by Miller adds to the earlier mentioned liquidity that central banks look for in an asset. BTC can be easily sold by central banks on any of the numerous exchanges during times of need.

In conclusion, the value of BTC will most definitely go up since we all know that it is finite at 21 Million BTC to be minted. With its value going up and liquidity being as simple as typing in a BTC address and sending, more and more central banks will consider the digital asset as part of its reserve assets.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Bitcoin

Bitcoin Price Dumps Below $41,000 Amid Uncertainty

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Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.

Fundamentals

Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.

Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.

Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.

Last week on Thursday, cryptocurrency experts took notice of…

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Bitcoin

Bitcoin Price is in Consolidation Mode Despite Market Optimism Post-Fed Decision

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Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.

Economic Outlook

Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.

The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.

Additionally, the central bank indicated that three rate…

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Bitcoin Price Blasts $44K in Spectacular Surge as Spot Bitcoin ETF Approval Looms Large

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Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.

Fundamentals

Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.

According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.

Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…

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