Counterfeit Gold Bars Flood The Market; Is Bitcoin The Solution to Precious Metals Forgery Crisis?

Well, the debate about Bitcoin’s utility compared to gold is back! This comes hours after it was revealed that bogus gold bars have flooded the gold market.

According to Reuters, the precious metal market is at the moment dealing with a counterfeit problem after phony gold bars were discovered in the vaults of top financial institutions involved in the gold industry like JPMorgan Chase.

Although only 1000 bars were found, experts in the gold market believe that there are more than this amount in the market. JPMorgan said that in accordance to the set standards, it had reported the issue to the relevant authorities as well as the refineries after its usual checks of its gold deposits.

The discovery of fakes in the market comes amid an increase in gold prices which traded at $1540, the highest it has traded against the dollar.

Following the news of fakes flooding the market, several crypto worshippers have taken the opportunity to hit at gold traders and holders who view the crypto industry as full of scams.

Numerous Bitcoin traders stated that it was easy to confirm the ownership of crypto holdings. They noted that on the other hand gold owners have to seek the services of experts to verify ownership.

Francis Pouliot, the proprietor behind Bull Bitcoin, a Canadian-based Bitcoin consumer platform, said that Bitcoin would have fixed the problem in the gold industry.

Would you accept gold as payment from someone you didn’t trust, without verifying the weight and purity of the gold before shipping your products to them? Think of a Bitcoin full node as a “fake Bitcoin detector” – all you need to verify “purity” of your Bitcoin is a Raspberry Pi pic.twitter.com/8GXQ5DZ4Ym

— wiz (@wiz) August 28, 2019

A renowned twitter user going by the name Bitcoin Wizard added to the discussion saying that gold payment was a risky venture since you will need to validate its purity before the transaction can be made. He however said that it was easy to verify a Bitcoin node.

Bitcoin fixes this.

— Francis Pouliot ☣️ (@francispouliot_) August 28, 2019

However, Cointelegraph reports that gold has tremendously increased in market value gaining more than 27% in value and in the process leaving some Bitcoin advocates looking bad for their campaign ‘drop gold for Bitcoin’.