
Jake Klein, CEO of Australian gold mining establishment Evolution Mining, has said that crypto price volatility will make gold a far more attractive proposition.
Speaking to CNBC on Thursday, Klein argued that Bitcoin ( $97,485.00 ) (BTC) is still ways away from offering the longstanding security associated with gold from a hedge investment perspective despite Bitcoin (
$97,485.00 ) ’s returns outsizing gold by several orders of magnitude in the last decade.
According to Klein, crypto is still a speculative play, and the attendant volatility inherent in such markets will point investors back toward gold.
The unstable nature of cryptocurrency prices is an often-cited criticism of crypto as an asset class. Back in June, Francesca Fornasari of BNY Mellon subsidiary outfit Insight Investment argued that Bitcoin ( $97,485.00 ) ’s price volatility, among other factors, might make BTC unsuitable for institutional investors.
Data from Woobull Charts puts Bitcoin ( $97,485.00 ) ’s 60-day volatility at 11.69% following BTC’s unstable price action in June when the annualized 30-day volatility soared to a one-year high above 117%.
Gold has also seen a choppy price performance since the start of a year with swings as high as $200 between June and August.
Despite Klein’s statement about gold still being superior to Bitcoin ( $97,485.00 ) , the executive stated that both assets could coexist while dismissing claims that BTC will eventually knock the precious metal off its haven-asset perch.
Related: Flash crash rattles gold markets as Bitcoin ( $97,485.00 ) holds strong
As previously reported by Cointelegraph, Bloomberg strategist Mike McGlone has recently stated that BTC was replacing gold.
In terms of returns, Bitcoin ( $97,485.00 ) trumps gold across all time frames since the former came into existence. Indeed, gold’s 10-year returns recently flipped negative, while Bitcoin (
$97,485.00 ) ’s performance over the last decade sits at over 360,000%.
Taking last year as a reference point also paints a similar picture. Gold is down 8% since August 2020, while Bitcoin ( $97,485.00 ) has printed a 300% gain since Aug. 20, 2020.