{"id":12958,"date":"2025-02-13T18:01:43","date_gmt":"2025-02-13T18:01:43","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=12958"},"modified":"2025-02-13T18:01:43","modified_gmt":"2025-02-13T18:01:43","slug":"bitcoins-breakout-expert-says-golds-biggest-disaster-is-coming","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=12958","title":{"rendered":"Bitcoin\u2019s Breakout? Expert Says Gold\u2019s Biggest Disaster Is Coming"},"content":{"rendered":"
\n

Jeff Park, Head of Alpha Strategies at Bitwise Asset Management, has gone on record to suggest that recent developments at the gold market might trigger a mass exodus to Bitcoin. Notably, the Bank of England is under scrutiny for extended delivery times on physical gold, fueling renewed debate about the reliability of gold-backed assets. As a reaction, Park writes<\/a> via X:<\/p>\n

\u201cI\u2019m counting down the days until a logistical disaster (or outright fraud) in the physical delivery of these assets shatters the faith of even the most devout gold believers, driving them straight into Bitcoin\u2019s arms,\u201d Park wrote via X.<\/p>\n

Bitcoin Over Gold<\/h2>\n

Park\u2019s statement comes amid reports that the Bank of England, which purportedly holds around 5,000 metric 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 matter, \u201cThe wait to withdraw bullion stored in the Bank of England<\/a>\u2019s vaults has risen from a few days to between four and eight weeks,\u201d indicating that the central bank is \u201cstruggling to keep up with demand.\u201d<\/p>\n

Market observers attribute these delays to an unprecedented surge in transatlantic shipments and rising gold inventories in the United States. \u201cPeople can\u2019t get their hands on gold because so much has been shipped to New York, and the rest is stuck in the queue,\u201d an industry executive told reporters. The central bank\u2019s backlog has coincided with growing stockpiles on the Comex commodity exchange in New York, which has seen its gold inventory rise nearly 75%\u2014from 533 metric tonnes to 926 metric tonnes\u2014since November\u2019s US election.<\/p>\n

Park further underscored the industry\u2019s history of logistical and fraud incidents by pointing to two notable scandals. He first mentioned the Qingdao Metal Scandal. \u201cHere\u2019s the hilarious story called the Qingdao Metal Scandal,\u201d Park wrote. He recounted how traders in China<\/a> reportedly used the same stockpiles of copper, aluminum, and nickel as collateral multiple times, only for it to be revealed that much of the actual metal was missing.<\/p>\n

Park highlighted another recent case with the London Metal Exchange (LME) Nickel Fiasco. \u201cThe LME found out that some of their nickel went missing! Instead of bags of the registered metals, bags of stones arrived. Even more shocking is that this is not LME\u2019s first nickel fraud.\u201d<\/p>\n

More recently, Park referenced reports that global commodities giant Trafigura discovered a shortfall of $500 million worth of fuel in Mongolia. \u201cI already posted about this, but worth refreshing that Trafigura lost $500mm of fuel in Mongolia three months ago,\u201d Park wrote.<\/p>\n

Such episodes, according to Park, illustrate the vulnerability of physical commodity markets. \u201cYou can take the \u2018physical\u2019 fuel out of Mongolia,\u201d Park added, \u201cbut you can\u2019t take spiritual fuel of Genghis Khan out of Mongolia.\u201d<\/p>\n

Advocates of digital assets like Park argue that Bitcoin, often touted as a \u2018hardest\u2019\u2019 asset on earth, sidesteps the logistical complexities that plague the physical commodities sector. Yet, paradoxically, it still faces hurdles when it comes to regulatory acceptance and ETF structures.<\/p>\n

\u201cMeanwhile, the hardest asset on Earth [Bitcoin] can\u2019t even be contributed in-kind<\/a> to its own beloved Bitcoin ETFs, despite having near-zero logistics costs. But sure, let\u2019s keep pretending this system makes sense,\u201d Park remarked.<\/p>\n

He went on to suggest that current regulatory frameworks remain a major obstacle: \u201cPart of why people are so worried about \u2018regulation\u2019 in crypto is because they keep putting the securities lens on the asset that doesn\u2019t actually work. Once you put the commodities lens on as the starting point, the world all of a sudden starts to make a LOT more sense.\u201d<\/p>\n

While the Bank of England has not issued a formal statement on the prolonged delivery times, observers see this as another potential wedge moment for traditional gold investors. If the backlogs persist, it could stoke further skepticism about the reliability of physical gold markets. Park and others in the crypto industry see this as a turning point that may pivot attention\u2014and capital\u2014toward Bitcoin, which does not need physical shipments or third-party vaults.<\/p>\n

At press time, BTC traded at $95,961.<\/p>\n

\"Bitcoin<\/div>\n","protected":false},"excerpt":{"rendered":"

Jeff Park, Head of Alpha Strategies at Bitwise Asset Management, has gone on record to suggest that recent developments at the gold market might trigger a mass exodus to Bitcoin. Notably, the Bank of England is under scrutiny for extended delivery times on physical gold, fueling renewed debate about the reliability of gold-backed assets. As […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-12958","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/12958","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12958"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/12958\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12958"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12958"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12958"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}