Gold Vs. Bitcoin: $2.8B Fake Bullion Scam Highlights BTC Benefits

Published on by Cointele | Published on

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The Bitcoin versus gold debate rages on this week as reports reveal fake bars fuelled a $2.8 billion corruption scheme.

As Chinese media outlet Caixin reported on June 29 via Nikkei, a loans deal between Chinese financial institutions and Wuhan Kingold Jewelry - with gold as collateral - fell apart when it became known the gold was gilded copper.

According to Caixin, "At least some" of the gold bars involved were simply copper, with the loan lenders seriously out of pocket as a result.

The saga is just the latest involving fake gold to engulf high-profile entities.

Previously, Cointelegraph reported on allegations that gold reserves in major central banks could also in fact be tainted with other metals.

For Bitcoin supporters, gold's authentication problems form a major argument against investing or holding the precious metal.

42% of over 2,300 respondents selected it, while gold was in second place.

For gold bug Peter Schiff the findings said more about the mentality of Bitcoin investors than gold's integrity.

Summarizing the gold versus Bitcoin debate in light of the Wuhan Kingold scandal Parallax Digital CEO Robert Breedlove hinted that the choice would be ultimately obvious for the market.

"#Bitcoin is more divisible, durable, portable, recognizable, and scarce than gold.