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Goldman Sachs: Gold is Becoming Poor Man’s Crypto

Goldman Sachs Says 'Crypto and Gold Do Not Have to Cannibalize Each Other'

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

Goldman Sachs – Gold and Bitcoin

Damian Courvalin from Goldman Sachs was interviewed by Bloomberg Thursday about the outlook for crypto and gold.

He was asked if he saw any evidence that investors used other assets to hedge against inflation than gold. He replied “I believe it’s actually beginning” and added: “We have argued historically crypto and gold don’t have to cannibalize one another .”

Admitting that “it’s a fact, we have seen substitution recently,” he detailed:

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

Courvalin said: “At the moment, there may be enough wealth for both, especially, because that inflation signal has starting to be more pressing .”

The executive noted: “The value of crypto is its network, just like the value of oil is the fact that it’s consumed. Like diamonds and art gold, it doesn’t possess that. It’s just a pure defensive asset that can outperform over a significant period of time.”

The head of Energy Research at Goldman, Goldman, also noted that investors moved to gold after China bans cryptocurrencies.

Many people are switching from gold to bitcoin because of inflation fears. In October, billionaire hedge fund manager Paul Tudor Jones said, “Clearly, there’s a place for crypto. It’s clearly winning the race against Gold at the Moment… It would be my favorite one over Gold at the Moment.” He stressed that crypto is “here to stay .”

In the same month, JPMorgan said, “Institutional investors appear to be returning to bitcoin perhaps seeing it as a better inflation hedge than gold.” The firm also doubled down on its long-term bitcoin price prediction of $146K for bitcoin as an alternative to gold.

Some people prefer both bitcoin and gold. Robert Kiyosaki (author Rich Dad Poor Dad) has recommended both bitcoin and gold. He predicted a market crash that would be followed by a new depression. He recommended, “Be smart: Buy, gold, silver, bitcoin.”

What do you think about the comments by Goldman Sachs’ executive? Please let us know your thoughts in the comments below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage resulting from or in connection to the content, goods, or services discussed in this article.

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BTC slips amid poor debut for Hong Kong spot ETFs

Bitcoin fell to under $62,000 after spiking past $64,700 earlier as Hong Kong spot Bitcoin and Ethereum ETFs began trading. Data showed trading volumes hit just over $11 million, against expectations of over $3oo million. Bitcoin price fell below $62,000 again amid market reaction to less than encouraging numbers from the first day of trading…


  • Bitcoin fell to under $62,000 after spiking past $64,700 earlier as Hong Kong spot Bitcoin and Ethereum ETFs began trading.
  • Data showed trading volumes hit just over $11 million, against expectations of over $3oo million.

Bitcoin price fell below $62,000 again amid market reaction to less than encouraging numbers from the first day of trading for much hyped spot Bitcoin and Ethereum ETFs in Hong Kong.

BTC was down about 1.4% at the time of writing, having touched lows of $61,587 across major crypto exchanges.

The benchmark cryptocurrency, which has struggled to reclaim key levels since its recent halving event, was seeing a 24-hour trading volume of $28.4 billion.

Bitcoin price and Hong Kong spot ETFs debut

Earlier, Bitcoin price surged to above $64,000 as the six spot Bitcoin and spot Ethereum ETFs went live in Hong Kong.

The flagship cryptocurrency rose to over $64,727 on US-based crypto exchange Coinbase. BTC also soared after reports Hong Kong approved the listing of the ETFs.

NEW: 🇭🇰 Opening ceremony of Hong Kong spot #Bitcoin ETFs 👏 pic.twitter.com/ux1eb5PqRn

— Bitcoin Magazine (@BitcoinMagazine) April 30, 2024

However, as data streamed in showing disappointing trading volumes and inflows, Bitcoin price took a hit. According to details of the six ETFs’s debut day, total trading volume reached just $11 million, not impressive given projections were much higher at over $300 million.

Bitcoin ETFs saw about $8.5 million while Ethereum ETFs recorded just $2.5 million on the first day. Ethereum price fell to $3,040.

Notably, the figures from Hong Kong are way lower compared to those recorded amid the enthusiasm that greeted the launch of spot Bitcoin ETFs in the US in January. On their debut, the US spot BTC ETFs raked in over $4.6 billion in trading volume.

The start to trading for the ETFs has not helped BTC price and BTC could face a slide under the $60k level if sentiment flips negative. On the upside, resistance at $65k remains critical and a breakout could see the bellwether digital asset soar towards its recent peak.


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