The bullion and traditional fiat currency markets continue being thrashed by inflationary headwinds triggered by the Covid-19 pandemic. As a result, Khurram Shroff, the Dubai-based chairman of the IBC group, has asserted that he believes cryptocurrencies will one day replace the gold and silver bullion market.
The long-term viability of cryptocurrencies
Shroff noted that the pandemic has exposed the bare-knuckle of the long-standing inefficiencies like the lack of transparency in the bullion market. He pointed out:
“Decentralized cryptocurrencies are sparking renewed interest on Wall Street, which seemed improbable just a year ago. Since Bitcoin supply is capped at 21 million, it helped maintain buoyancy in the crypto market, when bullion markets cracked under pressure.”
The bullion market entails gold, silver, and other precious metals stored in ingots, bars, or specialized coins as they are viewed as a store of value compared to conventional currencies.
Shroff’s sentiments correlate with the fact that Bitcoin (BTC) has been stealing the show while gold has been taking a beating. For instance, digital asset manager CoinShares disclosed that investment outflows from gold hit a record $9.2 billion in November.
This has not been the case with BTC because it continues to make merry thanks to a massive spending spree by institutional investors. Recently, it made a record-breaking move of smashing the $24,000 mark, and it is hovering around $23,500 at the time of writing, according to