Sandeep Biswas, CEO and CEO of Newcrest Mining, believes that cryptocurrency investors should consider buying gold to protect themselves from the extremely volatile prices of cryptocurrencies such as Bitcoin (BTC).
“If you are a fan of cryptocurrencies, consider getting some gold,” Biswas told Bloomberg TV on Thursday, highlighting that gold is less volatile than cryptocurrencies.
The CEO stressed that gold is another investment category. “It is a material resource: 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.”
Biswas referred to the rare nature of gold and said, “We have a lot to find […] although the cryptocurrencies we see are scattered all over the place.”
Mining executives said the overall gold price trend remains strong amid global inflation and monetary pressures as a result of government stimulus programs to combat the COVID-19 pandemic.
Biswa’s comments came amid a slight increase in volatility in the cryptocurrency markets. After Bitcoin surpassed its constant high of $ 48,000 on February 9, there was a correction and the BTC price fell below $ 45,000 the next day. According to Cointelegraph, Bitcoin’s annual volatility surged in the middle of the recent rally, almost affecting the level of volatility recorded during Black Thursday, when Bitcoin’s price fell 40% in a few days from $ 9,000 to $ 5,200.
In the midst of highly volatile cryptocurrency market movements, the price of gold is steadily rising amid a weakening US dollar in hopes of a US stimulus package. At the time of writing, spot gold is trading at $ 1,842, up 0.1% in the past 24 hours.
In December 2020, U.S. investment bank Goldman Sachs proposed that a corresponding increase in bitcoin at the end of 2020 would not hurt traditional assets like gold. The bank said: “We see no evidence that the Bitcoin rally is destroying the bull market in gold, and we believe they can coexist.”