Goldman Sachs analysts say Bitcoin’s rising popularity will not replace Gold’s status as the currency of last resort, according to Bloomberg. Gold and dollar’s recent underperformance has left investors concerned that Bitcoin may replace the precious metal as the inflation edge of choice.
- Goldman believes that Bitcoin and Gold can co-exist, but agrees there is some substitution between the two.
- Institutions and wealthy investors have avoided cryptocurrencies due to “transparency issues, while speculative retail investment has made Bitcoin an excessively risky asset.
- Bitcoin has risen steadily this month, exceeding $23,000 per token on Thursday to surpass the $20,000 milestone reached on Wednesday.
- This year, Bitcoin has more than tripled, while Gold has risen 24% after setting a record above $2,075 an ounce in August.
- Investors now anticipate Bitcoin will hit $400,000 due to its scarcity and rampant money printing by the Fed.
Bitcoin and Gold are currently declining. BTCUSD is down 0.44%, XAUUSD is 0.03%