Sandeep Biswas, CEO of Newcrest Mining, one of the world’s largest gold mining companies, said the sharp rise in the price of Bitcoin should force cryptocurrency investors to hold gold As a safe-haven asset.
In an interview with Bloomberg TV on February 11, Biswas criticized the volatility of Bitcoin (BTC) while despising gold as a tried-and-tested safe haven against currency inflation.
Biswas, head of Australia’s top gold producer, said: “If you like cryptocurrencies, you want to consider owning some gold.”[Bullion] It may be used as a hedging tool to hedge the volatility of cryptocurrencies. “
Bitcoin has been compared to gold, and now the top cryptocurrencies are accepted as the digital equivalent of gold in certain quarters. This week, BTC soared to a record US$48,800 after Tesla (the electric car manufacturer owned by Elon Musk) revealed a US$1.5 billion investment in the digital currency.
Tesla’s investment has reignited the debate about whether Bitcoin will eventually replace gold as the preferred safe-haven asset. Biswas was not impressed. He emphasized that gold is more stable than Bitcoin, and cryptocurrency investors who own precious metals will benefit from this stability. He explained:
Gold is another type of investment. This is a tangible asset: you can see, touch, feel, mold, make it into jewelry, whatever you want.
According to Goldman Sachs Group Inc., even if crypto assets continue to divest part of the metal it invests in, Bitcoin and gold can coexist. Goldman Sachs believes that gold will withstand capital flight. Bloomberg commodities strategist Mike McGlone also believes that Bitcoin has developed into a store of value similar to gold, that is, digital gold.
Year-to-date, spot gold has fallen by about 3% to US$1,826 per ounce, having hit a record high of US$2,000 last year. According to data from markets.Bitcoin.com, at the time of writing, the transaction price of each Bitcoin is approximately $47,649, which is a 0.18% increase in the past 24 hours.
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