Goldman Sachs: Gold Is Becoming Poor Man's Crypto.
"Just like we argue that silver is the poor man's gold, gold is maybe becoming the poor man's crypto," argues Goldman Sachs' head of energy research.
As inflation fears grow, he envisions money flowing from gold into bitcoin, noting that "we've maintained historically that crypto and gold do not have to devour each other."
Goldman Sachs on Bitcoin and Gold
In an interview with Bloomberg on Thursday, Damian Courvalin, Head of Energy Research at Goldman Sachs, discussed the future for gold and cryptocurrency.
He was asked if he has seen any indication of investors adopting assets other than gold to hedge against inflation, such as bitcoin and cryptocurrencies. "I think it's actually starting," he said, adding, "We've always argued that crypto and gold don't have to compete with each other."
He admitted that "it's a truth, we've seen substitution recently," and went on to explain:
Gold is maybe becoming the poor man's crypto, just as silver is the poor man's gold.
"At this moment, there may be enough money to allocate to both," Courvalin continued, "particularly, I believe, since that inflation signal is becoming more pressing."
"The value of crypto is its network, just as the value of oil is the fact that it is consumed," the CEO said. Gold, like diamonds and art, lacks this quality. It's essentially a pure defensive asset with the potential to thrive over time."
When China banned cryptocurrencies, investors flocked to gold, according to Goldman's head of energy research.
Inflation fears have caused many people to switch from gold to bitcoin. "Clearly, there is a role for crypto," billionaire hedge fund manager Paul Tudor Jones remarked in October. It's clearly winning the race against gold right now... At the moment, that would be my preferred option above gold." "Crypto is here to stay," he stated emphatically.
"Institutional investors appear to be returning to bitcoin, maybe perceiving it as a better inflation hedge than gold," JPMorgan stated in the same month. The business also reiterated its $146K long-term bitcoin price prediction for bitcoin as a gold alternative.
Some people, on the other hand, are fans of both gold and bitcoin. Dad is a wealthy man. Robert Kiyosaki, the author of Poor Dad, has advocated adopting both bitcoin and gold. In his most recent forecast, he predicted a massive market crash followed by a new depression. "Be smart: Buy gold, silver, and bitcoin," he said.
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