Gold has long been a favorite asset of central banks as a long-term store of value. However, as the era of financial digitization accelerates, the financial industry is beginning to see the potential of the crypto giant Bitcoin.
Bitcoin now seems to be being carefully evaluated as a global reserve asset and is now going through a more serious process. The market predicts that within 10 years, several central banks around the world will take the approach of holding Bitcoin as part of their long-term reserves.
Among the factors that drive the scenario where Bitcoin stands in line with gold and US bonds are the stability of the blockchain network, institutional acceptance and the bright future plans for Bitcoin.
In addition, its main feature is its limited availability and it meets the requirements very well compared to other digital assets.
Bitcoin currently has a maximum supply limit of 21 million tokens and there are currently 93.3% of them still actively circulating in the market. This report proves that the potential for liquidity in the future will be easier.
Like gold, BTC requires large-scale ownership through a digital mining process and can still be increased in yield compared to the relatively limited supply of gold.
What’s more interesting is that a large portion of this limited Bitcoin is currently owned by entities such as governments, large corporations, and investment funds, most of whom are unlikely to sell their holdings suddenly, thus reducing the risk of sudden price fluctuations.
To date, governments around the world collectively own around 2.3% of all Bitcoins ever mined, which is over 463,000 units.
Most were obtained through seizures and were not auctioned back onto the open market.
