Bank of Singapore: Bitcoin will replace gold as a defensive asset

Bank of Singapore joins traditional lenders that see Bitcoin as promisinga tool with enormous potential.

Bank of Singapore analysts admitted that BTC is notwill only be able to compete with gold for the status of the safest asset, but also has a chance of knocking the precious metal out of first place in this ranking, The National News reports, citing a new study from the Bank of Singapore

According to Bank of Singapore, the replacement by issuedprivately digital government currencies are unlikely to be used as legal tender, but they can take on the role of defensive assets such as gold. The organization specializes in private banking services and is part of OCBC Bank.

According to the study authors, cryptocurrenciescould replace gold as an electronic store of value once key barriers have been removed, including trust, volatility, regulatory acceptance and reputational risks. This will allow them to be included in investment portfolios for the purpose of protection and diversification.

“First, investors need to usetrusted by the institution for the safe storage of digital currencies. Secondly, liquidity should increase significantly in order to reduce volatility to acceptable levels "- says Mansour Mohi-uddin, a leading economist at the Bank of Singapore.

In support of his words, he points to the rise of bitcoin from $ 4,000 to $ 40,000 and a subsequent decline to $ 30,000.

“Bitcoin also correlates with stocks and otherrisky assets rather than being traded as a countercyclical defensive asset. During the financial crisis, cryptocurrencies are more likely to be sold by investors, as happened at the beginning of the pandemic in March 2020 "He adds.

At the same time, increasing the participation of institutionallong-term investors are helping to increase liquidity, reduce volatility and lead to prices being driven more by fundamentals than speculation, the Bank of Singapore said.

“The authorities must restrict criminal activityin order to reduce reputational risks when storing digital money. The authorities are very wary of any technology that could potentially replace national currencies. This will reduce the ability of lawmakers to print money during the economic crisis ", - notes Mohi-uddin.

Where is it more profitable to buy cryptocurrency?

For the safe and convenient purchase of cryptocurrencies, we have prepared a rating of the most reliable and popular cryptocurrency exchanges that support the deposit and withdrawal of funds in rubles, hryvnias, dollars and euros.

The most reliable sites with the highest turnoverfunds, for several years the largest cryptocurrency exchange in the world has been Binance. The Binance platform is the most popular crypto-exchange in the CIS as well, since it has the maximum trading volumes and supports transfers in rubles from Visa / MasterCard bank cards and payment systems QIWI, Advcash, Payeer.

Especially for beginners, we have prepared a detailed guide: How to buy bitcoin on a crypto exchange for rubles?

#	Cryptocurrency exchange	Official site	Site evaluation
1	Binance (Editor's Choice)	https://binance.com	9.7
2	Huobi	https://huobi.com	7.5
3	Exmo	https://exmo.me	6.9
4	Yobit	https://yobit.net	6.3
5	OKEx	https://okex.com	6.1

The criteria by which the rating is set in our rating of crypto-exchanges:

• Work reliability— stability of access to all functions of the platform, including uninterrupted trading, deposits and withdrawals of funds, as well as the duration of the market and daily trading volume.
• Commissions– the amount of commission for trading operations within the platform and withdrawal of assets.
• Feedback and support– we analyze user reviews and the quality of technical support.
• Convenience of the interface– we evaluate the functionality and intuitiveness of the interface, possible errors and failures when working with the exchange.
• Platform Features– availability of additional features — futures, options, staking, etc.
• final grade– the average number of points for all indicators determines the place in the ranking.

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