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Goldman Sachs\u2019 head of commodities research calls bitcoin \u201cthe retail inflation hedge\u201d and likens the cryptocurrency to copper. He says gold and bitcoin can co-exist and does \u201cnot see bitcoin\u2019s rising popularity as an existential threat to gold\u2019s status as the currency of last resort.\u201d<\/strong><\/p>\n Jeff Currie, global head of commodities research at Goldman Sachs, revealed his outlook for bitcoin, gold, and copper on Thursday. Commenting on the recent surge in bitcoin\u2019s price, he said on Bloomberg Markets that looking at its price chart, bitcoin looks \u201cvery similar\u201d to copper. \u201cWhat do they have in common?\u201d he continued:<\/p>\n They are both risk-on growth proxies, and I would argue that bitcoin is the retail inflation hedge.<\/p>\n<\/blockquote>\n Goldman Sach\u2019s strategists led by Currie also wrote in a note on Thursday that \u201cGold\u2019s recent underperformance versus real rates and the dollar has left some investors concerned that bitcoin is replacing gold as the inflation hedge of choice.\u201d<\/p>\n The strategists primarily attributed the recent decline in gold\u2019s price to a coronavirus vaccine-driven investment strategy that led investors to buy riskier assets, rather than abandoning gold on the basis of its diminishing value.<\/p>\n Currie emphasized that gold is a defensive asset and \u201cthere\u2019s really no evidence\u201d that BTC<\/a> \u201cstole demand from gold.\u201d Goldman Sachs\u2019 analysts wrote:<\/p>\n We do not see bitcoin\u2019s rising popularity as an existential threat to gold\u2019s status as the currency of last resort \u2026 We do not see evidence that bitcoin\u2019s rally is cannibalizing gold\u2019s bull market and believe the two can coexist.<\/p>\n<\/blockquote>\n <\/ins> <\/ins> <\/p>\n Some analysts, including those at JPMorgan Chase, disagree with Goldman Sachs, however. They believe that investors are moving money<\/a> out of gold investments into bitcoin. Some companies have also scaled down their gold exposure to purchase bitcoin to hedge against fiat currency devaluation, including British asset manager Ruffer<\/a>.<\/p>\n Do you agree with Goldman Sachs about bitcoin and gold? Let us know in the comments section below.<\/strong><\/em><\/p>\n The post Goldman Sachs Calls Bitcoin \u2018the Retail Inflation Hedge\u2019 That\u2019s Not a Threat to Gold<\/a> appeared first on Bitcoin News<\/a>.<\/p>\nGoldman Sachs on Bitcoin, Gold, Copper, and Inflation Hedge<\/h2>\n
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