Despite Bitcoin’s reputation as a digital contender to gold, analysts at investment bank Goldman Sachs believe Bitcoin has little impact on the gold market.
“Gold’s performance hasn’t been impressive lately, and some investors thought it was due to the rise in Bitcoin. That BTC had replaced gold as an inflation hedge. But we do not see any threat to the status of gold as the most secure asset amid the growing popularity of Bitcoin,” the bank’s analysts write.
Bitcoin is really showing impressive results this year – it has tripled and recently hit all-time highs. Gold in 2020 showed an increase of 24%. However, it remains the choice of large institutional investors because cryptocurrencies lack transparency and have too speculative investor sentiment.
“We do not see Bitcoin growing at the expense of the gold investor market, so we believe that both assets can perfectly coexist,” concluded representatives of Goldman Sachs.
Earlier, former Goldman Sachs president Gary Cohn said that the first cryptocurrency does not have a long-term perspective for investors. However, this does not stop institutional investors from buying BTC. In November, the hedge fund One River Digital Asset Management was founded, and it bought Bitcoins for $600 million.
