CEO of Newcrest Mining: “investments in gold are needed to hedge bitcoin risks»

CEO of Newcrest Mining: “investments in gold are needed to hedge bitcoin risks»

Sandeep Bisuoz, CEO of Newcrest Mining, said that cryptocurrency investors should invest in gold to insure against excessive volatility of digital assets.

Sandeep Biswas explained that people do not have to give up bitcoin in favor of gold, but they should think about buying this precious metal to protect themselves from a sudden drop in the cryptocurrency rate.

Gold is a completely different asset class that is less volatile compared to digital currencies. Biswas called gold ‘material’ asset that you can touch and turn it into jewelry or other things. He noted the scarcity of gold, while cryptocurrencies ” spread everywhere.”

The CEO of Newcrest Mining also said that against the backdrop of global inflation and money printing as part of stimulating the economy and fighting the pandemic, the price trend of gold remains attractive to the market.

Such statements by Bisuoz were made against the background of a” surge ” in the cryptocurrency market. A few days ago, bitcoin exceeded $48,000 for the first time, but the next day its price adjusted by about $3,000.

Economist Peter Schiff, who is known for his love of investing in gold and distrust of bitcoin, believes that the first cryptocurrency has no prospects, and in a few years, investments in bitcoin will become worthless.

At the end of 2020, analysts at the investment bank Goldman Sachs suggested that the rapid growth of the bitcoin exchange rate would not harm traditional assets such as gold. On the contrary, the bitcoin and gold markets can coexist peacefully.