Jeff Park, Head of Alpha Strategies at Bitwise Asset Management, has gone on a record to suggest that the latest developments in the gold market can trigger a mass excursion to Bitcoin. Noteworthy is the Bank of England under review for extended delivery times on physical gold, which drives a renewed debate on the reliability of gold -supported assets. As a reaction, park writing Via X:
“I count down the days until a logistical disaster (or direct fraud) in the physical delivery of these assets breaks the faith of even the most devoted gold trovs and drove them straight into Bitcoin’s arms,” Park wrote via X.
Bitcoin over gold
Park’s statement comes among reports that Bank of England, which is alleged, holds about 5,000 tonnes of gold, has delayed deliveries from what used to be a few days to four to eight weeks. According to a source familiar with the thing, “wait to withdraw Bullion stored in Bank of EnglandVarna’s vault has risen from a few days to between four and eight weeks “, indicating that the central bank” is struggling to keep up with demand. “
Market observers attribute these delays to an outstanding increase in transatlantic transport and rising gold inventories in the United States. “People can’t get hold of gold because so much has been sent to New York, and the rest is stuck in the queue,” an industry leader told reporters. The Central Bank’s order stock has coincided with growing warehouses at Comex Commodity Exchange in New York, which has seen its gold inventions increasing almost 75% – from 533 tonnes to 926 tonnes – is seen November election.
Park further emphasized the industry’s history of logistical and fraud events by pointing to two remarkable scandals. He first mentioned the Qingdao metal scandal. “Here is the funny story called Qingdao Metal Scandal,” Park wrote. He told us about how traders in Porcelain Reportedly used the same layer of copper, aluminum and nickel as security several times, just because it would be revealed that much of the actual metal was missing.
Park emphasized another recent case with the London Metal Exchange (LME) Nickelfiasco. “LME found out that some of their nickel disappeared! Instead of bags with the registered metals, bags arrived with stones. Even more shocking is that this is not LME’s first Nickelfärgeri. “
More recently, Park reported that Global Commodities Giant Trafigura discovered a lack of $ 500 million in fuel in Mongolia. “I have already posted this, but worth refreshing that Trafigura lost 500 mm fuel in Mongolia three months ago,” Park wrote.
According to Park, such sections illustrate the vulnerability in physical commodity markets. “You can take out the” physical “fuel from Mongolia,” Raised Park, “but you can’t take spiritual fuel from Genghis Khan out of Mongolia.”
Proponents of digital assets like Park claim that Bitcoin, often proclaimed as a “hardest” access to the earth, is what the logistical complexity that plagues the physical goods. Still, paradoxically, it is still facing obstacles when it comes to regulation acceptance and ETF structures.
“At the same time, the most severe asset on earth (bitcoin) cannot even be The contributions to their own beloved Bitcoin ETFs, even though they have almost zero logistics costs. But surely, let’s continue to pretend that this system makes sense, ”commented Park.
He went on to suggest that the current regulations remain a major obstacle: “Part of why people are so worried about” regulation “in crypto is because they continue to put the securities lens on the asset that actually does not work. Once you have put on the variety lens as a starting point, the world suddenly begins to be much more meaningful. “
While the Bank of England has not issued a formal statement about the long -term delivery times, the observers see this as another potential wedge moment for traditional gold investors. If the order storage remains, it can be made further skepticism about the reliability of physical gold markets. Park and others in the crypto industry see this as a turning point that can turn attention and capital-against Bitcoin, which does not need physical transport or third-party vaults.
At press time, BTC was about $ 95,961.
