Mining chief says unstable Bitcoin prices are turning investment flows towards gold

Jake Klein, CEO of Australian gold mining company Evolution Mining, has stated that the volatility of cryptocurrency prices will make gold a more attractive proposition.

Klein said in an interview with CNBC on Thursday debate That bitcoin (Bitcoin) From a hedge investment perspective, there is still a long way to go from offering gold-related long-term securities, even though Bitcoin’s returns have been orders of magnitude higher than gold in the past decade.

According to Klein, cryptocurrencies are still speculative, and the inherent volatility of such markets will make investors switch to gold again.

The volatile nature of cryptocurrency prices is a frequently cited criticism of crypto as an asset class.As early as June, Francesca Fornasari of Insight Investment, a subsidiary of the Bank of New York Mellon, believed that Bitcoin price fluctuations and other factors may cause BTC is not suitable for institutional investors.

Data from Woobull Charts shows that Bitcoin’s 60-day volatility rate is 11.69%. Previously, the price trend of BTC was unstable in June, when the 30-day annualized volatility soared to a one-year high of more than 117%.

Since the beginning of the year, the price of gold has also fluctuated, with fluctuations of up to $200 from June to August.

Despite Klein’s statement that gold is still superior to Bitcoin, the miner stated that the two assets can coexist and refutes BTC’s claim that precious metals will eventually be removed from its safe-haven assets.

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As previously reported by Cointelegraph, Bloomberg strategist Mike McGlone recently stated that BTC is replacing gold.

In terms of returns, Bitcoin has outperformed gold in all periods of time since the advent of Bitcoin. indeed, Gold’s 10-year return recently turned negative And Bitcoin has performed more than 360,000% in the past ten years.

A similar picture was drawn using last year as a reference point. Gold has fallen by 8% since August 2020, while Bitcoin has risen by 300% since August 20, 2020.