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Gold is Better Than Bitcoin (BTC): Goldman Sachs Says

Wall Street giant Goldman Sachs has stated that it trusts gold will outshine Bitcoin, the most renowned digital coins, in the long run as far as demand drivers are concerned. What are your thoughts on that? Nevertheless, let us dive deeper.

Gold will outshine the world’s leading crypto, Bitcoin, in the longer term as far as demand drivers are concerned, according to Wall Street giant Goldman Sachs. Still, the leading bank expects extreme financial situations to influence crypto more.

Goldman Sachs note in a research notice that gold remains a worthy portfolio diversifier since it exhibits non-speculative usages. Yet, the bank’s opinions show BTC is still looking for one. The statement indicated that the renowned crypto is looking for legit use cases.

Reuters report indicated that Goldman Sachs analysts asserted that though investors purchase gold as a dollar basement and inflation hedge, BTC is more like the stock of risk-on & high-growth ‘software’ businesses.

The bank trusts crypto is a solution searching for a problem, with its value proposition originating from its capable future real-world application. Goldman Sachs believes at the current stage crypto markets boast higher speculation and volatility than gold.

BTC Interest to Dip amidst Tightened Monetary Policy

The bank predicts a decline in investor interest in decentralized virtual currencies as financial policies become more restrictive. Goldman Sachs reacted in an email referring to hedge company 3AC and the lenders FTX, Celsius, and BlockFi.

Also, the systemic uncertainty that emerged due to multiple notable players filing for bankruptcy contributed to BTC’s heightened downward volatility. Goldman Sachs stated that the past year witnessed the number of speculative holdings held in Bitcoin and gold plunging substantially.

Gold has seen a marginal value increase in YTD, whereas Bitcoin dropped by 75% in that timeframe. The bank confirmed lower available liquidity. And that would lead to less drag on gold, exposing the precious metal to sincere demand factors. They include the buying tendencies of Asian consumers, industrial uses, and central banks’ financial requirements.

One of the well-known Silicon Valley investors and Draper Associated founder Tim Draper emphasized his previous $250L per BTC price forecast early this month. He believes BTC will hit the milestone by June 2023. Remember, many know Draper as the most prosperous investor in the region.

Several billionaires share Draper’s crypto optimism. For instance, Mike Novogratz believes BTC will hit $500K per token. Yet, he delayed his forecast due to possible rate hikes by central banks, such as Fed, aiming to cool inflation. Thus, Novogratz trusts Bitcoin touching $500K could take more than five years.

What are your views on gold versus Bitcoin? You can share your comments in the section below.

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