Goldman Sachs analysts: Gold is better than Bitcoin
Gold is better than cryptocurrencies due to its durability and intrinsic value. This opinion is shared by Goldman Sachs analysts Jeffrey Carrie and Michael Hinds. Bloomberg quoted them.
“Precious metals remain a popular class in the portfolios of modern investors, despite their low profitability,” analysts write. “They were not committed to history and did not become a holdover” despite the emergence of new asset classes such as cryptocurrencies, they say.
The main motivator for investing in gold in the short term is fear of uncertainty, which has increased in recent years. In the long term, the growth in the price of precious metals will be provided by the interest in them in new markets, including China, where the level of income is growing.
At the same time, analysts cited several criteria by which gold bypasses bitcoin: durability, intrinsic value and the ability to serve as a unit of account. Bitcoin has an advantage over gold only due to its ease of movement.
“And although both of these assets require certain knowledge for proper long-term storage, gold wins because cryptocurrencies can be hacked through online wallets or through users’ computers and smartphones, they carry regulatory risks, and their network and infrastructure are especially vulnerable during a crisis. “, They write.
“Transporting a bullion can be costly given its weight, the need for a high level of safety, and high import duties in certain countries. Bitcoin, on the other hand, can be transferred much faster and cheaper, ”analysts add..
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