Gold becomes poor man’s crypto

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Goldman Sachs head of energy research says, “Just as we argue that silver is a poor man’s gold, gold may be becoming the poor man’s crypto. He sees funds starting to switch from gold to bitcoin as inflation fears escalate, noting that “We have historically argued that crypto and gold should not cannibalize each other.” .

Goldman Sachs on Gold and Bitcoin

Damian Courvalin, head of energy research at Goldman Sachs, spoke about the prospects for gold and crypto in an interview with Bloomberg on Thursday.

He was asked if he saw any evidence of investors using other assets, including bitcoin and cryptocurrency, to hedge against inflation other than gold. “I think it’s actually starting,” he replied, adding, “We have historically argued that crypto and gold should not cannibalize each other.”

Admitting that “it is a fact, we have seen substitutions recently,” he detailed:

Just as we argue that silver is the poor man’s gold, maybe gold is becoming the poor man’s crypto.

Courvalin continued: “At this point there may be enough wealth to be allocated to both, especially, I think, as this inflation signal starts to get more pressing.”

The executive noted, “The value of crypto is its network, just as the value of oil is the fact that it is consumed. Gold, like diamonds and art, does not have this. It’s just a pure defensive asset that can outperform over a long period of time.

Goldman’s head of Energy Research further noted that when China banned cryptocurrencies, investors turned to gold.

Many people have switched from gold to bitcoin due to inflationary fears. In October, billionaire hedge fund manager Paul Tudor Jones said, “Obviously, there is a place for crypto. Clearly it’s winning the race against gold right now… That would be my favorite at gold right now. He stressed that “the crypto is here to stay”.

The same month, JPMorgan said: “Institutional investors appear to be reverting to bitcoin, perhaps viewing it as a better hedge against inflation than gold.” The company also doubled its long-term bitcoin price prediction to $ 146,000 for bitcoin as an alternative to gold.

Meanwhile, some people like both gold and bitcoin. Rich Dad Poor Dad Author Robert Kiyosaki, for example, has recommended both bitcoin and gold. In his latest prediction, he warned of a giant stock market crash followed by further depression. He recommended: “Be smart: buy gold, silver, bitcoin.”

What do you think of the comments from the Goldman Sachs executive? Let us know in the comments section below.

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