Russia has been very dependent on the US dollar for a long time. President Vladimir Putin wants to change that. Because of this, the Russian National Bank was the largest gold buyer in the world. It was a very wise decision on their part. Russia now has a gold reserve worth $ 109 billion. This gold has increased in value by over 40 percent this year. There are many countries that have turned to Bitcoin instead of precious metals. There is no question that Russia is one of the biggest countries when it comes to mining Bitcoin. However, the government firmly believes that gold is a much safer investment than Bitcoin.
There are also other countries that have invested heavily in gold. Why did you choose to invest in gold instead of Bitcoin? The answer is that Bitcoin is unable to protect a country’s national currency from inflation. Countries around the world are filling up with gold fearing a global recession is imminent. They believe that being dependent on Bitcoin during a recession would not be a safe bet. These countries can rely on the value of gold in a moment of economic crisis.
One of the big things Bitcoin has against it is the extreme volatility of cryptocurrencies in general. It is this volatility that would prevent it from being a reliable asset for a country to invest in to protect itself from a global recession. Only recently, trade problems between several large countries caused the stock market to decline. During this time, Bitcoin also lost value. However, gold rose in value. This only confirmed what many people have said about the reliability of gold compared to bitcoin.
How much gold will Russia buy? It remains to be seen. They haven’t shown any signs of slowing down. There are many people who still believe that Bitcoin is a safe and reliable alternative to traditional banking. There are strong arguments on both the gold and bitcoin sides. However, it seems that Russia has made its decision for now. Another country that has been stocking gold lately is China. The country has banned cryptocurrency trading. Hence, China has no choice but to buy gold unless they change their laws.