There is a strange mutual dislike in Bitcoin and gold investor circles. The famous investor in the precious metals market, Peter Schiff, often criticizes the idea of cryptocurrency. BTC supporters answer him with mockery. But can’t BTC and gold actually coexist in peace? Goldman Sachs says it is real.
Goldman Sachs on gold and BTC
Gold’s recent weak performance against real interest rates and the dollar has raised concerns from some investors that Bitcoin is replacing gold as the preferred hedge against inflation
– notes the bank. However, he adds:
While there is some substitution, we do not see Bitcoin’s growing popularity as an existential threat to gold’s status as a currency of last resort.
We read that today institutions are still afraid to invest in cryptocurrency due to “Transparency problems”. In turn “Speculative investment by retailers causes Bitcoin to act as an excessively risky asset.”
So we see no evidence that Bitcoin’s rise cannibalize the gold boom, and we believe both assets can coexist
Goldaman experts added.
Gold is gold, BTC is BTC
The bank’s analysts are right. Investors other than gold generally still invest in Bitcoin. Even if some people now give up buying coins or bars because they choose cryptocurrencies due to their recent, large price increases, it does not mean that Bitcoin will “win” gold from the market.
Remember that gold is an asset that is literally a thousand-year-old. Coins were minted from ancient times and used for the production of jewelry. It is hard to expect Bitcoin to become a complete alternative to this type of precious metal.
The cryptocurrency has been around for just over 10 years. The first institutional investors have only officially bought it recently. It is also bought mainly by young people, not older, experienced investors (okay, there are exceptions, but they only confirm the rule).
The above shows that gold and BTC can complement each other. Maybe it is wiser to invest in both, rather than wondering which asset is better? The more that the alternative is the constantly printed dollar …