Bitcoin instability will make investors pay attention to gold, the head of the mining company Evolution Mining Jake Klein believes. Superiority will return to the precious metal due to the fact that the cryptocurrency could not protect investors from inflation. It is reported by CNBC.
According to Jake Klyina, optimistic investors are considering Bitcoin as “digital gold” and a means of protection against inflation, expecting that over time it will only rise in price. For example, a billionaire investor Kevin O’Liiri said that “Bitcoin will always be gold,” and Ethereum is “silver”. However, this year the prices of both Bitcoin and gold are heavily fluctuated.
Klein believes that Bitcoin still has to go through the “long way” before he proves his “durability and security.” Gold is famous for these characteristics for 70 years. Chapter Evolution Mining is not alone in this opinion. When the middle of August, the price of gold fell, the Livermore Investment Fund manager David Neuhauser called it a “excellent opportunity for shopping” for investors. And the founder of the Bridgewater Associates Hedge Foundation Ray Dalio, despite the fact that he owns a certain number of cryptocurrencies, stated: “If you put a gun to my head and say that I will have only one thing, I would have chosen gold.”
For 14 and 15 August, Bitcoin’s price exceeded 48 thousand dollars – this is the highest level since May. However, the jump followed the sale of currency in June and July, when its cost fell below 30 thousand dollars.
In 2021, gold prices were also fluctuated. From the level above 1900 dollars in January, the cost decreased to the amount of about $ 1,700 in March. In June, the price returned to the mark $ 1900 again, and in August fell to a level of about $ 1700.