Catherine Raw, the North American COO of Barrick Gold, recently weighed in on cryptocurrencies indicating they are not competitive with gold. Raw was speaking at Fortune’s Most Powerful Women International Summit.
Gold has an edge over Crypto
She said that the physical nature of gold gives it value, something that it will always maintain regardless of the price. Whereas the value of Crypto can be zero, gold, on the other hand, will never get to zero. She said that is the distinctive feature between gold and cryptocurrency. As long as gold is used in making electronic equipment and jewelry, it will always have value.
Raw admitted that cryptocurrencies are disrupting the traditional market and thus it is here to stay. She referenced it to the legacy of the dot-com bubble while pointing at the growing trends in the crypto industry. Raw indicated that the gold industry should consider the surge as a chance to capture the attention of millennials who are more inclined to cryptocurrency. Currently, the gold industry has buried its head in the sand instead of capitalizing on the shifting demographic.
Growing crypto adoption
Major economies across the world are openly embracing cryptocurrencies. Top entrepreneurs are also adopting digital coins by incorporating them into their operations. Executives of leading institutions have publicly endorsed cryptocurrencies. The crypto community is looking forward to increased adoption.
Currently, demand for gold is high in Chinese and Indian markets as well as from central banks and institutions. Raw believes that the gold industry can attract investors between 20 and 40 years old who prefer cryptocurrencies to gold. She added that there is an impression among young investors that investment in gold is for the old.