During a recent episode of the Keizer Report, Max Keizer stated that people will buy Bitcoin en masse because there will be no gold. This due to the pandemic that has paralyzed the world, the Coronavirus.
Let us remember that COVID-19 has not only generated total chaos in the health system, it has also caused it in the economic sector. Since it became a pandemic, it has caused the paralysis of the world economy.
In that regard, Keizer said during his program that the Coronavirus pandemic will push billionaires to use gold as a safe haven.
Likewise, he expressed that, once the supplies were purchased and stored, the only alternative that would be left would be Bitcoin.
He summarized saying: “I predict, and this is not just the latest use case, but the latest irony, that once people realize they can’t get gold, they will start to flock to Bitcoin.”
Does coronavirus affect gold?
Due to the Coronavirus, an unprecedented problem has been experienced in the gold market in recent weeks.
People began looking for a “safe harbor” for their savings, which ended up being gold due to the Coronavirus. However, thanks to COVID-19, gold refineries in Switzerland were also quarantined, which ended up affecting the stability of the gemstone as a refuge.
When expeditions were canceled, “physical” gold (bullion) could not be transferred to London and New York. Goldsmiths in these regions have become unable to find enough gold to meet the growing demand.
Max Keizer, one of the well known names in the world of crypto money, draws attention to this problem exactly. According to Keizer, when the moment of crisis arrives, the wealthy will turn their money into gold and will not find a port to “take refuge”.
Keizer believes that Bitcoin will be activated at this point. He argued that when people can’t find gold to buy, they will start taking refuge in BTC.
Max Keizer’s statement on Bitcoin was as follows:
“I think people will start turning to Bitcoin as soon as they realize they can’t buy gold.”
Bitcoin is digital gold
Today, Bitcoin is considered to be digital gold, because people can use the cryptocurrency as if they were using gold. Of course, there are certain similarities (such as limited supply) and big differences (volatility) between BTC and gold.
However, there is a difference between these two things that outshines everything else: gold is physical, while Bitcoin is digital.
As we mentioned earlier, gold is currently experiencing a border problem, since it cannot be transported or traded. Instead, Bitcoin can be operated and transferred without any problems, that is the advantage of being a digital asset.
The Keizer report added that this time, unlike the 2008 financial crisis, gold mines are being closed by the Coronavirus, ironically drowning the opportunity to increase supply.
Keizer ended by asserting that:
“We could be facing a serious crisis in the gold markets, just like in the toilet paper markets.”