Gold is becoming a cryptocurrency for the poor – Economics Bitcoin News
The head of energy research at Goldman Sachs said: “Just like we think silver is the poor people’s gold, gold may be becoming the poor people’s cryptocurrency.” He believes that as inflation concerns escalate, funds begin to flow from gold into Bitcoin, noting that ” We have historically believed that cryptocurrency and gold need not cannibalize each other.”
Goldman Sachs on gold and Bitcoin
Damian Courvalin, head of energy research at Goldman Sachs, spoke about the prospects of gold and cryptocurrencies in an interview with Bloomberg on Thursday.
He was asked if there is any evidence that investors use other assets (including Bitcoin and cryptocurrencies) to hedge inflation outside of gold. “I think it has actually started,” he replied, adding: “We have historically believed that cryptocurrencies and gold don’t have to cannibalize each other.”
He acknowledged that “this is a fact, we have seen alternatives recently”, and he elaborated:
Just as we think silver is the poor’s gold, gold may be becoming the poor’s cryptocurrency.
Courvalin continued: “At this point, there may be enough wealth to be distributed to both, especially in my opinion, because inflation signals are starting to become more urgent.”
The executive pointed out: “The value of cryptocurrency lies in its network, just as the value of oil lies in the fact that it is consumed. Gold, like diamonds and art, has no such thing. It is just a purely defensive asset. , Can perform well for a long time.”
The head of Goldman Sachs Energy Research further pointed out that when China banned cryptocurrencies, investors turned to gold.
Because of concerns about inflation, many people have switched from gold to Bitcoin. In October, billionaire hedge fund manager Paul Tudor Jones Said“Obviously, there is a place for cryptocurrency. Obviously, it is currently winning the game with gold… At the moment I prefer it to gold.” He emphasized that “cryptocurrency will continue to exist.”
In the same month, JP Morgan Chase Said, “Institutional investors seem to be returning to Bitcoin, perhaps seeing it as a better inflation hedging tool than gold.” The company also double The long-term Bitcoin price forecast for Bitcoin as an alternative to gold is $146,000.
At the same time, some people like both gold and Bitcoin. For example, rich dad poor dad writer Robert Kiyosaki has been recommending Bitcoin and gold. In his latest forecast, he warned that there will be a huge market crash, followed by a new depression.he Respected, “Be smart: buy gold, silver, bitcoin.”
What do you think of the comments of Goldman Sachs executives? Let us know in the comments section below.
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