Jeff Park, responsible for alpha strategies at Bitwise Asset Management, said recent developments on the gold market could trigger a massive exodus in Bitcoin. In particular, the Bank of England is examined for prolonged delivery times on physical gold, fueling a renewed debate on the reliability of golden back assets. In response, Park writes via x:
“I count the days until a logistics disaster (or outright fraud) in the physical delivery of these assets breaks the very devoted golden believers, leading them directly into Bitcoin arms “wrote Park via X.
Bitcoin on gold
Park’s declaration comes in the midst of reports according to which the Bank of England, which contains approximately 5,000 tonnes of gold, delayed the deliveries of what was previously a few days to four to eight weeks. According to a source familiar with the issue, “the wait to withdraw ingots stored in the trunk of the Bank of England has gone from a few days to four and eight weeks”, indicating that the Central Bank “has trouble respond to demand. “”
Market observers attribute these delays to an unprecedented increase in transatlantic expeditions and increasing gold inventories in the United States. “People cannot get their hands on gold because so much have been shipped to New York, and the rest is stuck in the queue,” a director of the industry told journalists. The arrears of the central bank coincided with growing stocks on the Comex goods scholarship in New York, which saw its gold inventory increase by almost 75%, by 533 metric tonnes to 926 metric tonnes – American elections in November.
Park also underlined the history of logistical incidents and industry fraud indicating two notable scandals. He first mentioned the Qingdao metal scandal. “Here is the hilarious story called the Qingdao Metal scandal,” wrote Park. He told how traders in China would have used the same copper, aluminum and nickel stocks as several times, only to reveal that a large part of the real metal was missing.
Park has highlighted another recent case with the fiasco of Nickel London Metal Exchange (LME). “The LME discovered that part of their nickel had disappeared! Instead of saved metal bags, stones have arrived. Even more shocking is that it is not the first nickel fraud of LME. »»
More recently, Park has referred to the reports according to which the global raw material giant Trafigura has discovered a deficit of $ 500 million fuel in Mongolia. “I have already posted on this subject, but it is worth refreshing that Trafigura has lost $ 500 million in fuel in Mongolia three months ago,” wrote Park.
Such episodes, according to Park, illustrate the vulnerability of physical products markets. “You can withdraw the” physical “fuel from Mongolia,” added Park, “but you cannot take spiritual fuel from Gengis Khan from Mongolia.”
Defenders of digital active ingredients like Park maintain that Bitcoin, often presented as an asset “ hardest ‘on earth, bypassing the logistical complexities that afflict the physical products sector. However, paradoxically, he always faces obstacles with regard to regulatory acceptance and ETF structures.
“Meanwhile, the hardest asset on earth (Bitcoin) cannot even be contributed in kind to its own beloved Bitcoin Etf, despite the almost zero logistics costs. But of course, let’s continue to claim that this system makes sense, ”said Park.
He continued by suggesting that current regulatory executives remain a major obstacle: “Part of the reason why people are so worried about” regulations “in crypto is that they continue to put the objective of titles on the active that does not really work. Once you have put the goal of raw materials as a starting point, the world suddenly starts to make much more sense. »»
Although the Bank of England has not published an official declaration on prolonged delivery times, observers see this as another potential corner moment for traditional gold investors. If the arrears persist, it could further arouse skepticism as to the reliability of the physical markets of gold. Park and others in the cryptography industry see this as a turning point that can attract attention and capital – Bitcoin from both, which does not need physical shipments or third -party chests.
At the time of the press, the BTC was negotiated at $ 95,961.
Star image created with dall.e, tradingView.com graphic
