Gold loses bitcoin and becomes a “crypt for the poor”

Gold loses bitcoin and becomes a “crypt for the poor”

Goldman Sachs head of energy research Damian Kurvalin spoke with Bloomberg on Thursday, discussing the state of gold and crypto amid global developments.

Amid fears that inflation will only rise, Curvalin may see funds begin to shift from gold to bitcoin. Asked if there was any evidence that investors were fleeing to other assets, such as bitcoin and crypto, in an attempt to hedge against inflation, he said:

«I think it’s really starting.

We have historically argued that crypto and gold should not cannibalize each other. ”

The head of Goldman Sachs added:

“It’s a fact we’ve seen a replacement lately.

Just as we argue that silver is the gold of the poor, gold may become the crypt of the poor. ”

Kurvalin noted the threat of inflation and the solution offered by the crypto, saying:

“At this point there may be enough wealth to highlight both, especially, I think the signal of inflation is starting to be more pressing.

“The value of a crypt is its network, like the value of oil is what it is consumed. In gold, as in diamonds and art, it is not. It’s just a net defensive asset that can exceed a significant period of time. “

The head of Goldman Sachs also commented that after China’s dispersal of cryptocurrency, investors switched to gold.

However, while gold remains a solid choice in the investment portfolio, the popularity of bitcoin is beginning to surpass that of gold. In early October, Dallas Mavericks owner Mark Cuban, with his own value of $ 4.3 billion, said bitcoin was “better than gold.”

That same month, the billionaire, chairman of Virgin Galactic and CEO of Social Capital, Chamath Palihapitiya, told CNBC that bitcoin had actually replaced gold and that Bitcoin “Market capitalization will only grow.”

A recently published report by Deutsche Bank confirms that bitcoin will play the role of digital gold in the future. Enjoying the “advantage of newcomers” over other cryptocurrencies, a bank analyst says they “Potentially sees bitcoin become the digital gold of the 21st century” and that it could last for centuries and remain largely under the control of the government.