The Bank of Singapore said Bitcoin and altcoins are capable of replacing gold as a store of value. The bank said that over time, the crypto market would eventually provide a new electronic measure for storing value, relegating gold.
Speaking to The National News“First, investors need trustworthy institutions to be able to hold digital currencies securely. Second, liquidity needs to improve significantly to reduce volatility to manageable levels.”
The chief economist referred to Bitcoin’s performance over the past year. He mentioned how Bitcoin rebounded after its mid-March crash, reaching an all-time high to later decline shortly after. In 2020, Bitcoin grew significantly as a result of an increase in its demand and rise in individual and institutional investors.
Mohiuddin doubts the possibility that digital assets would replace fiat currencies. He said:
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