Malaysia Prime Minister Wants to Bring Back a Gold-Backed Common Currency, But Bitcoin is Better?
- In the opinion of experts such as Saifedean Ammous, Bitcoin has a number of distinct advantages over Gold — especially in terms of the former being a more efficient Store of Value (SOV) than the yellow precious metal.
- In his book, The Bitcoin Standard, Ammous claims that within the coming decade or so, more and more people across the world will wean away from gold and start making use of BTC.
According to an article published by Reuters recently, Mahathir Bin Mohamad — the current Prime Minister of Malaysia and the oldest head of state in the world— wants to create a unified trading currency for East Asia that is backed by Gold. For those of our readers who may not be aware, the 93-year leader is well known for taking bold fiscal stances in the past and has often been lauded for his open-mindedness towards newer technologies such as crypto and blockchain.
As part of the ongoing Nikkei ‘Future of Asia’ conference in Tokyo, Mahathir stated that it was high time Asia’s eastern block came together to establish a common trading currency that was based on the historic gold-standard. In his opinion, this new asset will serve as a settlement instrument for things like local trading, exports and imports.
More On The Matter
In the past, the Malaysian PM has often blamed foreign market exchanges and various lobby groups of manipulating his region’s local currency — primarily by meddling with global stock prices. Not only that, but he has also been a vocal critic of people like George Soros, who have previously been accused of hedging big against the region.
On the subject of using cryptocurrencies, Mahathir has often flirted with the proposition but never given any clear commitment regarding the same. For example, he was recently quoted as saying:
“Generally, we are thinking about it. To find out the role it replaces,”
Lastly, it should be pointed out that as soon as Mahathir proclaimed his support for the yellow precious metal, longtime goldbug and anti-BTC proponent Peter Schiff took to Twitter to explain to the world how good an SOV Gold really was.
Attention crypto shoppers: Gold is the future of money, not Bitcoin!https://t.co/jENKDzsXll
— Peter Schiff (@PeterSchiff) May 30, 2019
In closing out this piece, we should point out that the only thing Gold has over Bitcoin right now is its historical precedence over the digital asset. However, since Bitcoin is easily divisible, can be stored easily and has a limited supply, it offers investors a number of unique advantages that gold can only dream of.