Opinion: Bitcoin and gold are not competitors to each other

Pavel Grachev, head of Polyus, Russia’s largest gold-mining company, does not regard the comparison between bitcoin and gold as correct. He said this in an interview with РБК.

According to him, participants in the cryptocurrency industry “are doing their best to equate bitcoin with gold, positioning it as a store of value,” but this is hindered by the high price volatility.

“We believe that bitcoin and gold are not competitors to each other in the long term. They have different groups of investors, and over time they will diverge from one another more and more,” said Grachev.

When asked whether he owns bitcoins, the head of Polyus said he doesn’t even know where to buy them.

Earlier, many financiers see the first cryptocurrency as potential digital gold of the 21st century. Last year, Citibank said as much, and in September this year Deutsche Bank said so.

BlackRock’s Chief Investment Officer Rick Rieder believes that bitcoin can replace gold, and Bank of Singapore’s Chief Economist Mansur Mohi-ud-din thinks that bitcoin can compete with gold as a store of value.

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