Despite bitcoin’s reputation as a digital counterpart to gold, analysts at investment bank Goldman Sachs believe that bitcoin has almost no impact on the gold market.
“Gold’s recent performance has not been impressive, and some investors have thought that this is due to the rise in the bitcoin exchange rate, that BTC has replaced gold as an inflation hedging asset. But we do not see the growing popularity of bitcoin as any threat to the status of gold as the most protected asset, ” the bank’s analysts write.
Bitcoin is really showing impressive results this year — it has tripled, and recently updated historical highs. Gold for 2020 showed an increase of 24%. However, gold remains the choice of large institutional investors due to the fact that cryptocurrencies have “insufficient transparency and 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,” Goldman Sachs representatives concluded.
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 prevent institutional investors from buying BTC. Recently, it became known that the company One River Digital Asset Management was founded, which in November bought bitcoins for $600 million.