The Bloomberg interview revealed that Old Mutual Gold and Silver Fund have bought around 11 million US dollars from its holdings to buy the world’s most popular cryptocurrency, bitcoin this time. It is another feather of the decentralized currency cap, as well as the debate over whether the gold medal can be regarded as a hedge against a difficult economic period.
Bitcoin making way for Reintroduction of Gold as Global Money
Ranjeetha Pakiam described:
“The Old Mutual Gold & Silver Fund, which manages $220 million of mostly precious metal equities, is jumping on the bitcoin wagon.”
Fund manager Ned Naylor-Leyland explained to Ms. Pakiam how they’ve been gobbling up bitcoin since April “with a mandate to allocate as much as 5 percent to cryptocurrencies,” Pakiam wrote.
“Bitcoin is making the way for the reintroduction of gold as global money,” Mr. Naylor-Leyland stated. Instead of considering bitcoin as a threat to the precious metal, he instead views it as a way to educate investors.
“Bitcoin was explicitly designed to be digital gold. So if you’re going to have a small proportion of a fund in bitcoin, it should be in a gold fund, because that’s exactly the point.”
It has a very interesting end to a broader goal, but nobody blames the fund. Bitcoin is up by 100% this year. And because of the purchase of funds in April, the digital currency has increased from just 1,000 USD to $ 8,000.
Bitcoin is a way to Sound Money
“Bitcoin and blockchain resolve” divisibility problems, Ms. Pakiam writes of the fund manager’s thoughts, “[problems of] ownership and speed of transmission.”
“We’re going to revert to sound money,” Mr. Naylor-Leyland is quoted. “If you imagine sound money and blockchain together, there’s quite an exciting potential outcome.”
This is certainly a novel way for bitcoin. Crypto maximalists indicate that it is time-consuming before digital currency gold is overtaken. And Bitcoin has done less than a decade, with a precious metal four-millennia headstart.
It is 100 times better than the current bitcoin evaluation in the 7-trillion USD market cap with the current 5 billion ounce order coming out and more than 1,200 USD.
However, a good bet seems to understand a big point: the metal limits are the inspiration behind the formation of Bitcoin in terms of deficiency, mining, and utility. They are not different from each other: Both terms are good about government liberation values, and voice money advocates ask.