As stated by Goldman Sachs Group Inc, Gold and Bitcoin can live together. Also said that gold standing will endure while the digital currency may be thieving some demand from the first of havens.
“The precious metal’s current loss against real rates and the dollar has left some stockholders concerned that Bitcoin is replacing Gold as the increased hedge of choice,” Said the bank in a note. While there has been some exchange, the bank did not saw Bitcoin’s rising popularity as a risk to gold’s prestige.
Bitcoin, exceeding $23,000 per token on Thursday, has seen a blistering rally this month, having exceeded $20,000 breakthrough for the first time on Wednesday. Its climb has driven into debate about whether Bitcoin will cut into gold’s character. JPMorgan Chase & Co. quarrelling that the increase of cryptocurrencies in mainstream finance is coming at the expense of gold.
“Institution and wealthy investors avoid cryptocurrencies due to transparency issues, while speculative retail investment causes Bitcoin to act as an extremely dangerous asset,” Goldman said. He continued that they did not see proof that Bitcoin’s bull market, and believe the two can coexist.
While gold’s up 24% after setting a record above $2,075 an ounce in August, Bitcoin has more than triple this year. Scott Minerd of Guggenheim investments believes Bitcoin’s inadequacy should hit $400,000, combined with “rampant Money printing” by the Federal Reserve.