Jake Klein Believes Bitcoin Volatility Will Boost Gold Investments
TL; Distribution DR
- The president of Evolution Mining says Bitcoin’s price volatility will be the main reason people invest in gold.
- Jake Klein claims that from a hedge fund perspective, BTC lacks the security that exists with gold.
- Jake believes regulatory uncertainties are a serious issue for investors.
The Bitcoin industry has long been known for its volatility, and given the drop in the price of Bitcoin yesterday followed by today’s reversal, the president of Evolution Mining cites Bitcoin as an extremely volatile industry. The volatility of the market makes the price of Bitcoin almost unpredictable and, therefore, not safe enough for institutional investors.
In a recent interview with CNBC, the CEO of a gold mining organization, Evolution Mining, Jake Klein, is not particularly bullish on cryptocurrencies. Considering Bitcoin’s prices this year, we’ve seen cryptocurrency prices hover between all-time highs and then drop over 50%.
Bitcoin still has a long way to go in terms of stability
Before entering a market, institutional investors seek security, and according to Evolution Mining CEO Jake Klein, Bitcoin still has a long way to go before it becomes stable for investment. Due to the recent increase in Bitcoin’s volatility, the CEO says investors might switch to investing in gold because it is less volatile.
According to Jake Klein, gold is an evergreen asset that has demonstrated the durability sought by investors for over 70 years. This means that people will soon start investing in gold again.
Contrary to Klein’s views, Bitcoin investors who are the most bullish on the asset can be seen comparing Bitcoin as the future replacement for gold.