Economist: Crypto Market Will Replace Gold Market In 2022
Economist and geopolitical scholar Jacey Collins believes that the crypto market will replace the gold market next year as it develops financially in the economic field and produces the latest financial products. He also believes that the crypto market will not stop anything.
Everything below is the opinion of Jacy Collinson himself that the crypto market will replace the gold market next year.
According to the information of the General Gold Council, as of December 2017, the entire capitalization of the gold market was equal to $7.8 trillion. Gold is currently trading at 1215 USD/oz. In addition to the ups and downs that are already behind, the price of the most common precious metal has remained unchanged for 6 years. The decline in the gold market can serve as an indicator of many things, but it clearly does not correspond to the announcement of the Fed (Federal Reserve System, which includes 12 Federal Reserve Banks) to normalize monetary policy.
The general normalization and stabilization of monetary policy has already been underway for a couple of years, despite this, the gold market is still experiencing downtime, which demonstrates the low impact of the measures taken by the Fed. This does not bode well for gold, because the world is facing the adoption of a new asset class that is ready to take off to multiply its capitalization. At its most recent price record in October last year, the total market capitalization of the crypto market reached $800 billion. This is certainly not much compared to $7.8 trillion, but according to many people, large institutional investors have not even entered the digital asset market.
In the future, gold may return to the sales levels of 2008 (around $ 800), idle prices in one place can serve as an indicator for most investors that demand for the most popular precious metal will experience an insignificant decline in price at best. Despite this, China and Russia are replenishing gold reserves and presumably have plans to build new gold standards that are tied to the national digital currency.
Gold standards are deflationary by their principle in the economy, despite this, most countries understand that the universal standard of the new format is near the speed, scalability cost of the crypto market, and not the gold market. Who knows, maybe Russia and China have plans to build an internal architecture based on gold and a national digital currency.
Today, only one thing is clear that no nation or central bank has an interest in returning technology and abandoning a new source of liquidity, only in order to support the precious metals market, which will be replaced by a new asset class within a year. For sure, the gold market will continue to exist, but will itself become a sub-market of digital assets, in the footsteps of the stock market.
Most likely, the end of 2018 will be marked by a massive entry of institutional investors into the cryptosphere, as global format exchanges have already created favorable conditions for crypto trading for millions of investors who will flood the cryptocurrency market, and capital will flow from the gold market.
What price tag gold has does not matter, whether it is $800 or $1800. The real message is that the newest asset class will serve as a new source of global liquidity. The crypto market will replace the gold market as it expands and captures more and more areas of the financial sector and financial products. Nothing will stop him now.
Recall that the giant investment bank Union Bank of Switzerland (UBS) said that if the rate of digital gold reaches $ 213 thousand, then it will be compared with the US money supply, thereby bitcoin will be able to replace the dollar.
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