GOLDILOCKS
Bitcoin is a convertible virtual currency. This is why we witnessed gold beginning to track Bitcoin on the first day of its introduction (ETF) onto the markets.
Gold tracks currency. Be it cryptocurrency or paper currency, gold will support them as an underlying asset. In the new economy, tokenized assets are supported by gold and other commodities. This will give us a stabilizing effect capable of deflating and inflating the economy through gold.
Back to currencies and cryptocurrencies, we are about to witness more tokenized assets and ETFs come on board with the new digital asset-based trading system. Some of these new assets will be Stablecoins.
Stablecoins are representations of our paper currencies and digital values inside the new payment systems we will be utilizing. Yes, they will be tracked and supported by gold giving them a stronger value.
Gold serves as a hedge for declining currencies and issues with inflation. When Stablecoins begin to make their way into this new Digital Market, it will be important to keep our eyes on their relevance to our paper currencies. Gold as a strategic asset - Reuters
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