Sandeep Biswas, chief executive officer of Newcrest Mining, one of the world’s largest gold miners, has said that the sharp increase in Bitcoin (BTC) price should compel crypto investors to hold gold as a safe-haven asset.
In a Feb. 11 interview with Bloomberg, Biswas criticized Bitcoin’s (BTC) volatility while flouting gold’s credentials as a time-tested haven against inflation.
“If you’re into cryptos, you want to consider having some gold,” said Biswas, who heads Australia’s top gold producer. “[Bullion] may act as a bit of a hedge against the volatility of cryptos.”
Bitcoin has drawn comparisons with gold, and the flagship cryptocurrency is now accepted in some quarters as gold’s digital equivalent. This week, BTC hit the high of $48,800 after Tesla, the Elon Musk-owned electric car company, revealed a $1.5 billion investment in Bitcoin.
Tesla’s investment reignited the debate on whether bitcoin would finally take over gold as the safe-haven asset of choice. Biswas was unimpressed, highlighting that gold was more stable than BTC, and crypto investors who owned the golden metal stood to benefit from this stability. He said:
Gold is a different class 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 make it into jewelry, whatever you want.
According to Goldman Sachs Group Inc., Bitcoin and gold can co-exist together, even as the crypto asset continues to strip the metal of some of its investments. Goldman thinks gold will endure the capital flight. Bloomberg commodity strategist Mike McGlone also argued that Bitcoin has matured into a gold-like store of value – a digital version of gold.
Spot gold is about 3% lower year-to-date at $1,826 an ounce after hitting an all-time high above $2,000 in 2020. At the time of publication, Bitcoin is trading for around $47,266, as per data from Binance.