Goldman Sachs Group Inc. stated that gold and Bitcoin can coexist, and although the largest digital currency may limit some demand in the oldest safe haven, the status of this precious metal will last.
The bank said in a report: “Gold has underperformed recently relative to real interest rates, and the U.S. dollar has caused some investors to worry that Bitcoin will replace gold as the preferred inflation hedge.” Although there is some alternative, “we It is not believed that the increasing popularity of Bitcoin poses an existential threat to gold's status as a last resort currency."
Bitcoin has seen a strong rally this month, surpassing $23,000 per token on Thursday, and it only surpassed the $20,000 milestone for the first time on Wednesday. JPMorgan Chase & Co. believes that its rise has sparked a debate about whether upstarts will cut the role of gold. JPMorgan Chase & Co. believes that the rise of cryptocurrencies in mainstream finance is at the expense of gold bullion.
Goldman Sachs stated that due to “transparency issues, institutions and wealthy investors have avoided using cryptocurrencies, and speculative retail investments have led to Bitcoin being an excessively risky asset.” “We have not seen evidence that Bitcoin’s rebound is eating away at gold Bull market, and believe that the two can coexist."
Bitcoin has more than tripled this year, while gold has gained 24% after setting a record of $2,075 per ounce in August. Scott Minerd of Guggenheim Investments believes that Bitcoin’s scarcity and the Federal Reserve’s “large amount of money printing” mean that the token should reach 400,000 Dollar.
I think Bitcoin is gradually become the digital gold. From my own point of view, I will like to view it from this perceptive.
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