Bitcoin poses no existential threat to gold – Goldman
Bitcoin will not harm gold, Goldman Sachs believes
JPMorgan has a different opinion with a view to the long term
Gold status could be shaken if institutional interests shift
International consortium of news organizations developing transparency standards.
The precious metal and the largest cryptocurrency by market capitalization can exist together, according to the bank
Bitcoin poses no critical threat to gold. At least this is the conclusion reached by Goldman Sachs, writes Bloomberg.
Despite the rise in bitcoin and the lack of progress in the price of gold, Goldman Sachs analysts do not believe that cryptocurrency may pose an “existential threat to the status of gold.”.
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Goldman is convinced that institutional investors and high net worth investors are avoiding cryptocurrencies due to “transparency issues.
“We see no evidence that the Bitcoin rally is cannibalizing the bull market for gold, and we believe they can coexist,” the bank said..
At the same time, the bank admitted that the lack of similar results on the growth rate of gold “made some investors worry.”.
However, JPMorgan has a radically different opinion. According to the experts of the American bank, if investment funds like Grayscale continue to increase their assets in bitcoin, this may negatively affect the growth of the precious metal..
JPMorgan analysts believe a shift in institutional interest towards Bitcoin would mean billions of dollars lost to the gold market over the long term.
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At the time of this writing, the market capitalization of gold, according to various estimates, is $ 9 trillion. Bitcoin capitalization slightly exceeds $ 428.5 billion, and the total cryptocurrency market capitalization is only $ 655 billion..
However, experts from Goldman Sachs and JPMorgan agree on one point: in the short to medium term, Bitcoin is not dangerous for gold, since cryptocurrency accounts for only 0.18% of assets in the family office portfolio compared to 3.3% of the exchange-traded fund for gold.
In the future, Bitcoin may replace gold as a defensive asset, JPMorgan said. Even a slight displacement of gold would mean doubling or even tripling the price of cryptocurrency.
Bitcoin price at the time of writing is $ 23,146.
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