Heres How Much Bitcoin the G8 Countries Will Have if They Reallocate Just 5% of Their Gold Stash
Matthew Sigel, head of digital asset research at VanEck, has explained how just 5% of the G8's reallocations from gold could impact Bitcoin supply.The world is slowly warming to Bitcoin and digital assets. Once viewed as highly speculative and lacking in intrinsic value, the pioneering crypto asset has forged a reputation as a store of value and digital gold.Since Donald Trump proposed a national Bitcoin stockpile, the prospects of holding the asset as a reserve asset have trended among nation-states. While the United States has yet to establish one, other countries are already looking to get ahead of the adoption curve.Meanwhile, pro-Bitcoin Republican Senator Cynthia Lummis has teased the idea of reallocating some US gold reserves to Bitcoin. With the concept still viewed as a viable option to create the Bitcoin reserve asset, Sigel has assessed the liquidity it would attract to the crypto asset.G8 Countriess 5% Reallocation Massive for BitcoinThe VanEck executive did not just assess the possible impact of the reallocation for the US; he also shared the impact of a similar ploy among the G8. For context, the G8 countries consist of eight of the most technologically advanced countries in the world.In a Wednesday post, Sigel shared that if these high-caliber countries shift just 5% of their gold reserves to Bitcoin, they will outhold the US spot exchange-traded funds (ETFs). Notably, the Bitcoin products are the largest Bitcoin holders cumulatively.Sigel highlights that the G8 countries are the United States, Germany, Italy, France, Russia, China, Switzerland, and Japan. Meanwhile, data shows that they hold over 30,000 tons of gold, amounting to roughly $2.9 trillion.
Text source: The Crypto Basic
