IBC Group Chairman: Cryptocurrency Replacing Bullion Market Just a "Matter of Time"
Brian Njuguna Dec 23, 2020 09:15
IBC Group Chairman, Khurram Shroff, believes that cryptocurrency will one day replace the bullion market which is continuously being thrashed by inflationary headwinds.
The bullion and traditional fiat currency markets continue being thrashed by inflationary headwinds triggered by the Covid-19 pandemic. As a result, Khurram Shroff, the Dubai-based chairman of the IBC group, has asserted that he believes cryptocurrencies will one day replace the gold and silver bullion market.
The long-term viability of cryptocurrencies
Shroff noted that the pandemic has exposed the bare-knuckle of the long-standing inefficiencies like the lack of transparency in the bullion market. He pointed out:
“Decentralized cryptocurrencies are sparking renewed interest on Wall Street, which seemed improbable just a year ago. Since Bitcoin supply is capped at 21 million, it helped maintain buoyancy in the crypto market, when bullion markets cracked under pressure.”
The bullion market entails gold, silver, and other precious metals stored in ingots, bars, or specialized coins as they are viewed as a store of value compared to conventional currencies.
Shroff’s sentiments correlate with the fact that Bitcoin (BTC) has been stealing the show while gold has been taking a beating. For instance, digital asset manager CoinShares disclosed that investment outflows from gold hit a record $9.2 billion in November.
This has not been the case with BTC because it continues to make merry thanks to a massive spending spree by institutional investors. Recently, it made a record-breaking move of smashing the $24,000 mark, and it is hovering around $23,500 at the time of writing, according to CoinMarketCap. Therefore, Shroff bases his argument on these statistics as they are reshaping the notions about the long-term viability of cryptocurrencies.
The flexibility of the crypto market
Shroff added that the crypto market was showcasing its flexibility and capability to adhere to the ever-changing requirements of contemporary society. He acknowledged:
“Unlike the energy-intensive mining model, the Proof-of-Stake model for Ethereum 2.0 doesn’t require large server farms, which makes it more eco-friendly and sustainable. This is the crypto market's way of showing how capable it is to adapt to the ever-evolving needs of the contemporary world.”
Leading cryptocurrencies like Bitcoin and Ethereum are continuously bringing the crypto space to the limelight based on the record highs and notable moves they are making. For instance, BTC billionaire Tyler Winklevoss recently revealed that the top cryptocurrency is the gift that continues giving.
The International Blockchain Consulting (IBC) Group has stamped its authority in the blockchain/crypto space because it spans 40 countries facilitating enterprise blockchain development, end to end ICO support, consulting and institutional training, and capital raising. It is estimated to hold one million Bitcoins.
Image source: Shutterstock