Bitcoin Fixes This: Fake Gold Bars Could Turn Investors Toward Digital Counterpart

Tony "The Bull" Severino

1 year ago

3 mins read

fake gold bars bitcoin blockchain crypto

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Bitcoin has been dubbed digital gold because the cryptocurrency shares many similar attributes with the precious metal.

However, a recent situation involving a forgery crisis in the gold industry shows how one important aspect of Bitcoin gives it an enormous advantage over its physical gold counterpart and could drive more investors seeking a safe-haven or store of value into the first-ever cryptocurrency.

Investors Beware: High-Purity Counterfeit Gold Bars Flooding the Market

Gold is a shiny, precious metal that’s been used for centuries as currency, store of value, a safe haven, a status symbol, and to create ornate, expensive jewelry. However, it’s status could soon be challenged by Bitcoin, thanks to a very specific attribute the cryptocurrency features over gold.

The reputation of the precious metal industry is currently being tarnished by a slew of counterfeit gold bars adorned with the official stamps of major refinery logos. While roughly only 1,000 of the bars have been discovered – a flash in the pan compared to the roughly 2.5 million bars produced each year – according to industry executives it is how legitimate the fakes gold bars are that is causing widespread concern.

Typical counterfeit bars are made with much cheaper metals, plated with gold on the outside, making them easy to detect. These new fakes in circulation, however, are real, high purity gold, with the only phony aspect being the official seal stamped onto each bar.

Bitcoin and Blockchain: Proof of Work Prevents Counterfeit BTC Transactions

The forgeries arrive at a time when the demand for gold across the globe is increasing. The precious metal has long been a flight to safety for investors seeking to avoid losses during economic downturns. With tensions increasing between the US and China, fiat currencies devaluing in the face of growing government debt, and a recession looming, gold has been increasing in value.

Throughout much of the year, however, Bitcoin was also rising alongside gold, which is also lauded for being a scarce asset and store of value. The two assets rising in tandem caused a safe-haven narrative to take center stage during Bitcoin’s sudden rally.

But this latest issue in the gold market highlights one attribute that Bitcoin has over gold that could finally show goldbugs that the new, digital counterpart, is a far better choice as a safe haven asset: Bitcoin cannot be faked.

Bitcoin is a digital asset, bound to a distributed ledger called blockchain, where every transaction of every Bitcoin is recorded for all to see. Each time Bitcoin is sent over the blockchain, using a consensus algorithm called proof-of-work, miners validate the block before it is added to the blockchain.

Theoretically, a counterfeit Bitcoin transaction could be created, however, it wouldn’t be validated by miners and added to the blockchain. Certain attacks are also possible but would require a third-party gaining control to over 51% of the Bitcoin network’s hash power, and given how decentralized the first-ever cryptocurrency is, such an attack isn’t likely.

This added layer of security could give gold investors peace of mind when considering a safe haven asset or a store of value, and help to shine a light on the many ways Bitcoin is a better asset than gold.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.