The unprecedented performance of Bitcoin over the last few weeks has wiped off 40% of its value. With unstabliizing crypto market, a different kind of pattern is emerging.
Crypto Owners Trade for Gold
Many believers of Bitcoin are hodling it fast and steady, but bullion dealers are seeing customers, who want to trade in their cryptos for Gold. One of the gold dealers in London has been accepting Gold for Bitcoins for past three months with trades worth 1m euros. Another dealer in Frankfurt has reported to quintuple in the recent crash, selling around 30 kg of gold worth around 1.2m euros.
Generally, bullion dealers don’t trade directly, and have third party for precautions against money laundering. With embarrassed millenials appearing at doorsteps with the laptops that was used to mine Bitcoins when its was $1. The store the exchanged gold with the dealer for the safety in bullion’s underground vault.
Value of Crypto?
Since the beginning it has been wondered whether cryptocurrencies can be classed as store of value. But with the exchanges for gold and new gold rush, there might be an emerging answer.