• Tether and Bitfinex CTO Paolo Ardoino believes that it is better to sell Bitcoin for gold rather than USD.
• He cites the 30% of all USD in circulation that was printed in the past three years due to economic stimulus from central banks as an example of how inflation can devalue national currencies.
• Gold and Bitcoin are both seen as scarce, hard-to-extract assets, making them attractive safe haven investments during times of economic instability.
The Benefits of Selling BTC for Gold
Tether CTO Paolo Ardoino recently discussed the benefits of selling Bitcoin (BTC) for gold instead of US dollars during an insightful conversation with Cryptonews. He emphasized that gold is a tangible asset that has been used by central banks as a reserve asset, and noted that its scarcity and extraction difficulty make it an attractive safe haven investment during times of economic instability. Furthermore, he highlighted the fact that 30% of all US dollars have been printed in the past three years due to economic stimulus from central banks, which can lead to currency devaluation and inflation.
Gold vs. Digital Gold: Bitcoin
Ardoino also drew parallels between gold and its digital counterpart, Bitcoin. While central banks have a long history of using gold as a reserve asset, he acknowledged that integrating Bitcoin into these traditional systems remains a challenge due to its complexity. Nonetheless, he expressed his admiration for the deep connection between gold and digital gold – BTC – noting that both assets share characteristics such as their scarcity, extraction difficulty, and production cost.
Rising Demand For Gold In Asia
According to Ardoino, China and India are leading buyers when it comes to purchasing physical gold – further reinforcing its role as a secure store-of-value asset within these countries’ economies. However, he clarified that Tether Gold is not competing with Bitcoin but with US dollars as a means of conducting global transactions quickly and efficiently without relying on fiat currency fluctuations or volatility risks associated with other digital assets.
Why Choose Gold Over USD?
Ardoino highlighted how having something tangible like gold in one’s portfolio can be beneficial when faced with high levels of inflation or currency devaluation – two issues which many countries have experienced since the onset of COVID-19 pandemic last year. He suggested selling BTC for gold instead of USD because the latter is subject to mass money printing by central banks which can lead to further depreciation over time if left unchecked – effectively eroding people’s savings and investments in the long run unless they are protected through tangible assets like precious metals or digital currencies such as BTC or ETH.
Conclusion
Overall, this discussion provided insight into why individuals may want to consider diversifying their portfolios away from fiat currencies into more stable commodities such as physical or digital gold – especially in volatile economic climates where national currencies are subject to rapid devaluation due to widespread money printing from governments or banking institutions looking for short term solutions during financial crises events like we are now experiencing today worldwide