Fake bullion scam highlights bitcoin’s benefits

The debate over the relative merits of bitcoin (BTC) versus gold heated up this week after reports emerged of counterfeit bars fueling a $2.8 billion corruption scheme.

Citing Chinese and Japanese media outlets, Cointelegraph reported that a loans deal between Chinese financial institutions and Wuhan Kingold Jewelry – with gold as collateral – fell apart when it became known that the gold was actually gilded copper.

According to Chinese outlet Caixin, “at least some” of the gold bars involved were simply copper, with the loan lenders seriously out of pocket as a result.

“That has left lenders holding the bag for the remaining 16 billion yuan of loans outstanding against the bogus bars,” it reported.

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