Sandeep Biswas, CEO of Newcrest Mining, one of the world’s largest gold mining companies, said the sharp rise in Bitcoin prices should force crypto investors to hold gold as a safe haven.
In an interview with Bloomberg TV on February 11th, Biswas criticized Bitcoin’s (BTC) volatility while disregarding gold’s references as a proven haven against money inflation.
“If you are interested in cryptos, consider having some gold,” said Biswas, who runs Australia’s top gold producers. “[Bullion] can serve as a hedge against the volatility of cryptos. “
Bitcoin has made comparisons to gold, and the top cryptocurrency is now being accepted as the digital equivalent of gold in a few quarters of the way. This week, BTC hit a record high of $ 48,800 after Tesla, Elon Musk’s electric car maker, announced a $ 1.5 billion investment in the digital currency.
Tesla’s investment sparked debate over whether Bitcoin would ultimately adopt gold as the safe haven of choice. Biswas was unfazed, insisting that gold was more stable than BTC, and crypto investors who owned the precious metal benefited from that stability. He explained:
Gold is another asset class. It’s a tangible asset: you can see it, you can touch it, you can feel it, you can shape it, you can turn it into jewelry, whatever you want.
According to Goldman Sachs Group Inc., Bitcoin and gold can coexist even if the crypto asset continues to strip the metal of some of its investments. Goldman believes gold will endure capital flight. Bloomberg commodities strategist Mike McGlone also argued that BTC had matured into a gold-like store of value – a digital version of gold.
Spot gold is roughly 3% lower year-to-date at $ 1,826 an ounce, after hitting an all-time high of over $ 2,000 last year. At the time of writing, each bitcoin was trading for around $ 47,649, up 0.18% over the past 24 hours. This is based on data from Markets.Bitcoin.com.
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