Evolution Mining Chairman: Bitcoin Volatility will Ultimately Lure Investors to Gold
The world’s biggest cryptocurrency, Bitcoin (BTC), is now the center of attention after a meteoric rise to $47,000 in the past few days. Nevertheless, it appears that Bitcoin has returned to the phase of price swings.While writing this article, Bitcoin was trading 1.7 percent down at $44,430, with a market value of $836 billion.
According to Jake Klein, chairman of the gold mining company Evolution Mining, the fluctuation in the Bitcoin price may encourage investors to the yellow metal. While the Bitcoin price has risen substantially this year, gold prices have stayed relatively stable with a modest reaction.
Earlier today, Klein stated on CNBC’s Squawk Box Asia, “I believe the fluctuation in the cryptocurrency sector is going to eventually pave way for people to return back to gold.” The value of gold has been falling over the past week, and some experts believe it will continue to decrease. Hedge fund manager David Neuhauser, on the other hand, thinks that this presents investors with a “massive (gold) purchasing option.”
Jake Klein, the head of a mining company, does not view Bitcoin as a direct competitor to gold. He thinks that the two asset classes can prosper side by side. Klein thinks Bitcoin still has a long road ahead. Furthermore, it should demonstrate “long – term survival and safety,” as gold has demonstrated for the past 70 years. Even top investment experts prefer gold over bitcoin. Ray Dali, a wealthy hedge fund manager, reportedly said, “If you point a pistol to my head and say, I can only hold one, I would pick gold.” He does, nevertheless, still have an unknown quantity of BTC.
According to the most recent on-chain statistics, Bitcoin is now experiencing a “double bubble,” with two price peaks expected in 2021. Charles Edwards, CEO of investment company Capriole, said Wednesday, August 18, that a comparable scenario occurred in 2013.
Edwards also mentions an essential statistic called unrealized profit and loss (U&PL). “Latest data signaling a Bitcoin double bubble,” he lately said. “Bounces in previous cycle peaks just weren’t able to keep unrealized profit and loss over 0.5. This has only been accomplished by the 2013 double bubble and today.”
A close examination of the Bitcoin double bubble charts reveals a two-stage price high in 2021. On April 19, 2020, the Bitcoin Bubble Index reached an all-time peak of 119.While writing this article, Bitcoin was trading at an all-time peak of $64,000.
The Bitcoin Bubble Index is now at 110, with BTC trading at $44,500. Other experts, on the contrary, have begun to set higher price predictions for Bitcoin (BTC) in 2021. PlanB, the creator of the stock-to-flow model, predicted that Bitcoin’s price might reach $100,000, and the prevailing price is matching his chart forecasts.
✅ Aug > $47K https://t.co/tj6SSwSzKR
— PlanB (@100trillionUSD) August 13, 2021