Goldman Sachs that has “Gold” in its name calls the asset poor man’s crypto. The head of energy research of the firm said that like silver is referred to as poor man’s Gold, maybe Gold can be referred to as poor man’s crypto. This is happening as the firm notes a lot of funds flowing from Gold to crypto-assets like BTC, ETH, and other altcoins. While both of them exist side by side, it is clear that people are losing interest in one end while gaining a lot of interest on the other.
Gold vs. Bitcoin
Just note that when we compare Gold with crypto, it is not with everything. The primary competitor of Gold is Bitcoin, and if you hear people moving out money from Gold to crypto, it’s mostly BTC. In this year, when inflation is at its peak in the US, Gold has failed as an inflation hedge. On the other hand, Bitcoin has given amazing returns, which have made it attractive to investors. Even though it is often said that the existence of Gold and Bitcoin doesn’t have to affect each other, it is happening.
Another advantage that the Goldman Sachs executive talked about is the network of crypto which gives it value. He also compared it to oil, saying that the value of oil lies in the fact that it is consumed. So, if you think the same way of Gold, it does have use cases like in electrical components or Jewellery, but those use cases are pretty limited. It doesn’t mean that Gold will continue like this or perform badly forever, but it can do much better over a stretch of time. So, note that crypto is here to stay.
Bitcoin price targets
Bitcoin is currently trading over $64k after a slight pullback from $69k. At present, we are holding quite strong, and such corrections are expected. Also, note that JPMorgan has doubled down on their BTC price target of $146k. On the other hand, Plan B, the maker of the S2F model, has predicted $98k by November end and around $135k by December end.
What are your thoughts on Goldman Sachs executive calling “Gold” poor man’s crypto? And do you think Bitcoin will be able to topple Gold in the future? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.