Part 3/5:
The Role of Central Banks
Central banks have long viewed gold as a cornerstone for their reserves, especially during periods of instability. In times of conflict, when trust in governmental bonds dwindles—especially between adversarial nations—gold becomes a safe haven. This historical pattern emphasizes that governments can manipulate fiat currencies through printing and creating bonds, which weakens faith in those paper assets.
Bitcoin cannot offer the same confidence in such scenarios, as it is not universally accepted like gold. The cyclic nature of financial crises and governmental responses often drives central banks back to the security of gold rather than digital currencies.