Sandeep Biswas, Managing Director and CEO of Newcrest Mining, believes that cryptocurrency investors should consider buying some gold to protect themselves from the extremely unstable prices of cryptocurrencies like Bitcoin (BTC).
“If you are a fan of cryptocurrencies, you want to think about getting some gold,” Biswas said on Bloomberg TV on Thursday, stressing that gold is less volatile than cryptocurrencies.
The CEO emphasized that gold is a different category of investment. “It’s a tangible asset: you can see it, you can touch it, you can feel it, you can mold it, you can turn it into jewelry, whatever you want.”
Biswas pointed to the rare nature of gold, saying, “There is a lot to be found […] While cryptocurrencies, we see them multiplying everywhere. ”
The executive in the field of mining said that the general trend in gold prices is still strong amid global inflation and money printing resulting from government stimulus programs to confront the COVID-19 pandemic.
Biswas’s comments come amid a slight increase in volatility in the cryptocurrency markets. After breaking an all-time high of over $ 48,000 on February 9, Bitcoin subsequently saw a correction, with BTC’s price dropping below $ 45,000 the next day. According to Cointelegraph, Bitcoin’s annual volatility rose amid a recent price hike, almost touching the volatility levels recorded during “Black Thursday”, when Bitcoin’s price fell 40% in a matter of days from $ 9,000 to $ 5,200.
Amid the highly volatile moves in the cryptocurrency market, gold has been steadily rising amid US dollar weakness triggered by hopes for a US stimulus package. At the time of writing, spot gold was trading at $ 1,842, up slightly by 0.1% in the past 24 hours.
In December 2020, US investment bank Goldman Sachs suggested that the equivalent rise of Bitcoin in late 2020 should not hurt traditional assets like gold. The bank stated: “We see no evidence that a rally in Bitcoin leads to a dismantling of the bullish gold market and we believe the two can coexist.”