Bitcoin has stolen the scene in the cryptocurrency market again after massive surges propelled the world’s largest cryptocurrency past the $10,000 mark recently. The price boom resulted in many proponents of the cryptocurrency to make connections between the growth of the digital asset and its impact on mainstream finance in the future.
A recent analysis showed that Bitcoin on its current warpath, can actually function as a foundational financial asset like gold. The research pointed out that a certain number of BTC can be used by countries, like some members of the P5, to actually replace gold as their underlying functional asset.
The United States of America was the obvious leader in terms of gold holdings, as the Donald Trump-led country has amassed more gold than the IMF, Germany, and Italy combined. As it stands, it would require 913,388 BTC to replace all the gold within the US, a nexus where assets are spread across corporations, government bodies and individuals.
The US was followed by Germany, where it would take 378,416 BTC to replace the country’s existing gold holdings. Germany has been at the forefront of technological innovation and the adoption of Bitcoin in the country is a realistic scenario, given the policies put in place by Angela Merkel.
Germany’s dominance in the Bitcoin ecosystem was also made evident when it was revealed that the country held the most number of BTC nodes in Europe. Although the 1880 nodes in Germany were way behind the US’s number, the figure still accounted for 20 percent of the world’s Bitcoin nodes.
Vladimir Putin’s Russia needs 232,033 BTC to replace the gold controlled by the Kremlin. Considering the fact that the Russian parliament’s lower house was considering the large scale adoption of cryptocurrencies, Bitcoin may find a way to replace gold in the country. LocalBitcoins, a popular cryptocurrency exchange, recently reported that there was steady trading volume in terms of Russian Rubles, on the back of the cash-trades exodus.
The first week of June saw a high of RUB 1,174 million, following which the amount dropped to RUB 1,104. Russia joined other niche countries like Venezuela and Colombia as top performers on LocalBitcoin, in turn assisting Bitcoin’s rapid growth.
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