New York (Godmode-Trader.de) – The wild swings in cryptocurrencies will move Bitcoin investors to ultimately return to gold. This is the opinion of the CEO of the gold mining company Evolution Mining, Jake Klein. Bitcoin still has a “long way to go” before it shows the kind of “longevity and security” that gold has offered investors over the past 70 years, the manager told US broadcaster CNBC. “A large amount of speculative money flows in cryptocurrencies,” emphasized Klein.
The gold price also fell sharply last month. At the end of July it looked as if the precious metal was tackling the next upper hurdle at 1,900 US dollars a troy ounce, but within a few hours after a surprisingly positive US labor market report, the price fell by over 100 US dollars. After all, the slump to just under $ 1,700 was followed by a rapid recovery to just under $ 1,790, where the note last stabilized. Hedge fund manager David Neuhauser told CNBC earlier this week that the sudden drop in gold prices recently presented a “massive buying opportunity” for investors.
Bullish investors view Bitcoin as digital gold and a hedge against inflation and expect the cryptocurrency to continue to appreciate in value over time. US investor Tyler Winklevoss, who founded Winklevoss Capital Management and the Gemini cryptocurrency exchange, said last year that “Bitcoin is growing into Gold 2.0” and that it will displace gold over time.
There are, of course, numerous other investors who take the opposite view. According to CNBC, hedge fund manager Ray Dalio, who is said to hold tons of bitcoin, said earlier this month, “If you put a gun to my head and said I could only have one, I would choose gold.”
Bitcoin is holding near the $ 48,000 mark, its highest level since May. The most recent spike followed a sell-off in June and July when Bitcoin fell below $ 30,000.