Central Banks Choose Gold Over Bitcoin

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Economist Peter Schiff has reignited the debate between gold and Bitcoin, highlighting a significant trend: central banks worldwide are increasing their gold reserves while showing little interest in Bitcoin. Currently, these institutions are purchasing over 1,000 metric tons of gold annually, more than double the historical average of the past decade.

Schiff argues that this preference underscores gold's enduring stability and trustworthiness as a reserve asset, especially amid growing skepticism about the U.S. dollar's dominance. In contrast, Bitcoin's volatility and lack of institutional adoption make it a less attractive option for central banks seeking to hedge against economic uncertainties.

This trend raises important questions about the future of reserve assets and the role of cryptocurrencies in global finance.
Financial Times

Question for Discussion:

Given central banks' continued preference for gold over Bitcoin, what factors do you believe are most influential in their decision-making?