- The chairman of Evolution Mining claims that the Bitcoin price volatility will be the major reason why people will invest in gold.
- Jake Klein claims that from the perspective of a hedge fund, BTC lacks security that exists with gold.
- Jake believes the regulatory uncertainties are a serious issue for investors.
The Bitcoin industry has been known for its volatility for a long time, and considering yesterday’s fall in the price of Bitcoin followed by today’s reversal, the chairman of Evolution Mining cites Bitcoin to be an extremely volatile industry. The volatility of the market makes the price of Bitcoin almost unpredictable and, therefore, not secure enough for institutional investors.
In a recent interview given to CNBC, the CEO of a gold mining organization, Evolution Mining, Jake Klein, isn’t particularly bullish on cryptocurrencies. Considering the Bitcoin prices this year, we have seen the prices of the cryptocurrency swinging between all-time highs and then, a drop of more than 50 percent.
Bitcoin still has a long way to go when it comes to stability
Before entering any market, institutional investors look for security, and according to the CEO of Evolution Mining, Jake Klein, Bitcoin still has a long way to go before it becomes stable for investment. Due to the recent surge in the volatility for Bitcoin, the CEO claims that investors might switch to gold investment as it is less volatile.
According to Jake Klein, gold is an evergreen asset that has demonstrated the durability that investors seek for over 70 years. This means that people will soon start returning to investing in gold.
As opposed to the views by Klein, the investors in Bitcoin who are most bullish on the asset can be seen comparing Bitcoin as the future replacement for gold.