Goldman Sachs Comments Bitcoin and Gold Rivalry

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Banking giant Goldman Sachs made a comment that would clarify the rivalry between Bitcoin and gold. Bank analysts stated that the two assets will continue to grow rather than compete.

Goldman Sachs analysts do not think that Bitcoin and gold will try to get a share, given the weakening dollar and interest yields in the negative zone. According to Coindesk’s Goldman Sachs research note, analysts comment on the issue, “Conditions are conducive to the growth of both entities.” was in the form.

There is a correlation between these assets and Bitcoin

Goldman Sachs analysts who don’t just compare Bitcoin to gold; It also handled metals such as copper, zinc and tin. A very strong correlation has been observed between the aforementioned metals and the bitcoin price since October. The reason for this is that investors want to be protected from inflation and Bitcoin and some metals offer high returns in the long term.

Both have different roles in the portfolio

Goldman Sachs’ predictions for the price of gold are bullish. It is expected that gold will continue to be included in portfolios as the choice of those who want to avoid risk. Stating that Bitcoin continues to be in the risky area, Goldman Sachs said that the roles of Bitcoin and gold in the portfolio are completely different. The basis of this difference is the high volatility of BTC.

Volatility interpretation for Bitcoin is not new

Goldman Sachs expert Sharmin Mossavar-Rahmani warned of the high volatility seen in Bitcoin. The expert stated that this situation made BTC away from being a store of value or being used as a means of payment.