Jeff Park, the head of the Alfa Strategy in Bitise Asset Management, noted that the latest achievements on the gold market can cause a mass exodus to Bitcoin. In particular, the Bank of England is examined for a long time of delivery of physical gold, fueling the renovated debate on the reliability of assets supported by gold. As a park reaction I’m writing By X:

“I deduct the days until the logistics disaster (or direct fraud) in the physical supply of these assets breaks the faith of even the most pious gold believers, driving them straight into the arms of Bitcoin,” wrote the park by X.

Bitcoin over gold

The Park statement appears among reports that the Bank of England, which allegedly has about 5000 metric tons of gold, delayed delivery from what once passed a few days to four to eight weeks. According to the source known from the matter: “Waiting for the withdrawal of a bull stored in the treasures of the Bank of England increased from several days to four to eight weeks”, indicating that the central bank “is fighting to maintain demand. “

Market observers attribute these delays to the unprecedented boost in transatlantic shipments and growing gold stocks in the United States. “People cannot get gold because so many were sent to New York, and the rest got stuck in the queue,” the industry director told journalists. The Central Bank Plant coincided with the growing supplies on the Comex commodity exchange in Recent York, in which its gold resources increased by almost 75% – from 533 metric tons to 926 metric tons – from November elections in the USA.

The park additionally emphasized the history of logistics incidents and fraud in the industry, pointing to two significant scandals. First, he mentioned the Qingdao metal scandal. “Here is a funny story called Qingdao Metal Scandal,” wrote the park. Apparently, traders in China reportedly used the same supplies of copper, aluminum and nickel as multiple, only to reveal that there is a lack of a significant part of real metal.

The park emphasized the next last case with Nickel Fiasco London Metal Exchange (LME). “LME learned that some of their nickel were lost! Instead of bags of registered metals, stones came. Even more shocking is that this is not the first scam of LME nickel. “

Recently, the park mentioned reports that the global giant of goods found a fuel deficiency worth $ 500 million in Mongolia. “I have already written about it, but it is worth refreshing that Trafigura lost $ 500 million in Mongolia three months ago,” the park wrote.

According to the park, such episodes illustrate the susceptibility to the markets of physical goods. “You can pull out” physical “fuel from Mongolia,” added the park, “but you can’t pull out the spiritual fuel of Khan’s wardrobe from Mongolia.”

Proponents of digital assets, such as the park, claim that Bitcoin, often advertised as the “most difficult” resource on earth, bypasses the logistics complexity, which harasses the physical goods sector. However, paradoxically, he still struggles with obstacles when it comes to regulatory acceptance and ETF structures.

“Meanwhile, the most difficult resource on earth [Bitcoin] You can’t even contribute to your beloved ETF Bitcoin, although they have almost zero logistics costs. But clear, let’s pretend that this system makes sense, “the park noted.

Then he suggested that the current regulatory frames remain the main obstacle: “part of why people are so worried about” regulation “in cryptography is that they still place a lens of securities on resources that doesn’t really work. After putting the lens of goods as a starting point, the world suddenly begins to make much more sense. “

While the Bank of England has not issued a formal statement on prolonged delivery times, observers perceive this as another potential clin for time-honored gold investors. If the arrears persist, it may boost further skepticism as to the physical reliability of the gold markets. Park and others in the cryptographic industry perceive this as a turning point that can rotate attention-and Bitcoin, which does not require physical shipments or vaults of third parties.

During the BTC press it traded at USD 95,961.

A distinguished painting created from Dall.e, chart from tradingview.com