Is China’s Bitcoin secured with gold?

According to new rumours, the US repo markets are facing a financial catastrophe: China is about to cover its own crypto currency. However, China’s digital currency is hedged with gold, unlike other crypto currencies: Up to 20,000 tons of gold are to be made available in China for this purpose.

If these rumours are true, the prices for gold and Bitcoin are likely to rise rapidly in the near future and thus not stop at all. It is also foreseeable that such a crypto currency supported by gold would destroy the value of the US dollar.

 

Bitcoin now as safe an investment as precious metals

The rumours were supported by Max Keiser of RT at Kitco News. Keiser sees clear indications of the imminent financial catastrophe and emphasized during his Halloween appearance that China wants to destroy the dollar. Keiser attributes his own strong position on the financial market to clever investments: he is where he is now because he has invested classically in gold and silver as well as in Bitcoin. And it is in these three that he sees the future. Should the conventional, nationally issued currencies collapse, people would always retreat to precious metals – and, of course, to Bitcoin because of the latest possibilities. According to Keiser, the Bitcoin is superior to gold as a form of money.

 

As the value of gold recently reached new highs against the euro, Keiser transferred market mechanisms to the Bitcoin and predicted that BTC would rise to over $100,000. The collapse of the dollar is expected to lead to even higher values. Kitco News anchor Daniela Cambone pointed out that an investment of $10,000 in gold five years ago would bring a profit of $12,500 today. If the same amount had been invested in Bitcoin, the profit would have been $270,000.