Bitcoin’s (BTC) utility over gold has returned to the spotlight after news emerged of thousands of fakes infiltrating the precious metals market.
Thousands more fake gold bars could remain undetected
As Reuters reported on Aug. 28, the gold industry is currently facing a major forgery problem, with fake kilogram bars found in the vaults of major banks such as JPMorgan Chase.
While roughly one thousand have been discovered, experts told the publication there are likely many more still in circulation.
“It’s our standard practice to immediately alert the appropriate authorities and refineries should we discover mismarked gold kilobars during routine checks and procedures,” JPMorgan told the publication when approached for comment.
The revelation coincides with a spike in the price of gold, which this week reached $1,540 and its highest ever level against the euro.
Bitcoin full node is ‘fake Bitcoin detector’
Bitcoin node operators, several figures noted, can verify the authenticity of their holdings, while gold owners must rely on expertise.
“Bitcoin fixes this,” Francis Pouliot, founder of Canadian Bitcoin consumer platform Bull Bitcoin, commented on Twitter.
The popular Twitter account known as the Bitcoin Wizard went further.
“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?” a post on Wednesday reads. He added:
“Think of a Bitcoin full node as a ‘fake Bitcoin detector’ — all you need to verify ‘purity’ of your Bitcoin is a Raspberry Pi.”
As Cointelegraph reported, gold’s recent successes nonetheless left one crypto stalwart with egg on its face this week. Grayscale’s Drop Bitcoin campaign advised investors to dump the metal for Bitcoin in May, just before it gained 27%.