Posted 4 months ago | by @devadmin
Goldman Sachs’ head of commodities research Jeff Currie has stated that Bitcoin is “the retail inflation hedge” calling it not digital gold but comparing the number one digital asset to copper. Currie added, that gold and Bitcoin can co-exist and does “not see bitcoin’s rising popularity as an existential threat to gold’s status as the currency of last resort.”
Jeff Currie, global head of commodities research at Goldman Sachs, announced his outlook for bitcoin, gold, and copper on Bloomberg. Currie was also commented on the recent surge in Bitcoin’s price on Bloomberg Markets looking at its price chart, he said that Bitcoin looks “very similar” to copper. “What do they have in common?” he asked.
“They are both risk-on growth proxies, and I would argue that bitcoin is the retail inflation hedge.”
Business Insider further reports that Goldman Sach’s strategists led by Currie also wrote in a note on Thursday that “Gold’s recent underperformance versus real rates and the dollar has left some investors concerned that bitcoin is replacing gold as the inflation hedge of choice.”
Sachs’ strategists blamed the recent slump in gold’s price on the coronavirus vaccine-driven investment strategy that led investors to buy riskier assets, rather than abandoning gold on the basis of its diminishing value, the bank said.
Currie emphasized that gold is a defensive asset and “there’s really no evidence” that BTC “stole demand from gold.” Goldman Sachs’ analysts wrote:
“We do not see bitcoin’s rising popularity as an existential threat to gold’s status as the currency of last resort … We do not see evidence that bitcoin’s rally is cannibalizing gold’s bull market and believe the two can coexist.”
As Bitboy Crypto reported, JPMorgan has previously published a brief report acknowledging Grayscale trends involving Bitcoin, stating the leading digital asset was acting as an “alternative to gold.” JP Morgan disagrees with Goldman Sachs previously highlighting that institutional demand for Bitcoin had investors moving from gold exchange-traded funds (ETFs) to the number one digital cryptocurrency, noting that gold will suffer for years.
Bitcoin is currently trading at [FIAT: $23,214.42] UP +3.3% in the last 24 hours according to Coingecko at the time of this report.