As the debate continues over Bitcoin could replace gold, Goldman Sachs stated that Bitcoin and gold could coexist.
According to Goldman Sachs, there is no obstacle to the coexistence of gold and Bitcoin.
Goldman Sachs said that even though Bitcoin, the largest digital currency, stole some of the demand for gold, the oldest safe-haven, the precious metal could maintain its position.
“The poor performance of gold against real interest rates and the dollar has worried some investors that Bitcoin is replacing gold against inflation.” “While there are some alternatives, we do not think that the growing popularity of Bitcoin poses a threat to the existence of gold,” said the bank. he added.
We don’t think the bitcoin rally is blocking the rise of gold, and we believe the two can coexist.
Bitcoin rallied this month, first surpassing $ 20,000 on Wednesday and then surpassing $ 23,000 on Thursday.
Discussions began that the rise of cryptocurrencies would limit the role of gold, as JPMorgan stated that the rise of cryptocurrencies was stealing from the demand for ounce gold.
Institutions and wealthy investors are avoiding investing in cryptocurrencies “because of transparency issues and speculative retail sales make Bitcoin a risky asset,” Goldman said.