Gold has become the poor man’s crypto: Goldman Sachs

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Goldman Sachs head of energy research Damian Courvalin highlighted the value of metals in the market with the rise of cryptocurrencies in an interview with Bloomberg. Goldman Sachs is a leading New York-based investment bank. Courvalin spoke about the outlook for gold and crypto in the November 11 interview. It was quoted by Financial Express that gold is now becoming poor man’s crypto just as silver is called poor man’s gold. He called gold as such due to the transfer of funds to Bitcoin from gold as an inflation hedge.
When asked if cryptocurrencies like Bitcoin are used as a hedge against inflation, Courvalin replied that this phenomenon has actually started. He noted that metals like gold and diamonds are just a pure defensive asset that can outperform over a significant period of time. On the other hand, the value of crypto is its network, just as the value of oil is the fact that it is consumed.
However, Courvalin pointed out that following the ban in China, many investors have turned to gold and that there may be enough wealth to be allocated to both Bitcoin and gold.
JPMorgan also recently predicted a Bitcoin price prediction of $ 146,000 due to renewed interest from institutional investors in crypto as a better hedge against inflation than gold. In October, billionaire hedge fund manager Paul Tudor Jones also said people turned to Bitcoin from gold amid inflation fears. He claimed that the crypto is clearly winning the race against gold right now and that it will stay.
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