A report from Reuters the previous week stated that a massive gold ore had been discovered in Uganda- a report that put most investors in a tizzy. Now, one has to remember that the current times for cryptocurrency aren’t stable at all. Most of the proponents of the industry have been looking toward seizing any and all forms of news that would help charge up flagging markets. And the news from this African country is just the sort of fuel that they would like to bring about. Well, one could be wondering about the significance of gold mining in Africa on the price of global Bitcoin. And their curiosity will be justified.
Uganda Could Be Producing Enough Gold To Catapult Bitcoin
For quite some time now, Bitcoin has been laying claim to being the only digital gold- which lies on the strength of the 21 million supply limit. Now, one would know that gold was the store of value par excellence, with a solid track record and a limited supply.
So, if Uganda were to be sitting on 31 million metric tons of gold ore, wouldn’t it heavily boost the gold supply of the world? This, in turn, would be lowering the price of gold- thereby making it a less secure store of value generally. Therefore, the loss of gold would be a gain for the cryptocurrency world. Needless to say, a lot of investors in cryptocurrencies have taken some form of encouragement from this notion.
Yet, one can’t be too sure of this news. The 320,158 metric tons of refined gold that the mining ministry spokesman for Uganda mentioned could be produced also from the new deposits that were currently posited in the northeastern corner of the country. This could far exceed the 200,000 metric tons of above-ground gold that currently existed in the world today. In fact, one gold mining trade publication even reported that the government could be making a mistake in their projections.