Bitcoin and Gold Commentary by Goldman Sachs! Which Will Earn More?

Not making a good start to 2022 Bitcoin (BTC) and cryptocurrencies experienced sharp declines during the year.

BTCin and altcoinWould gold be safer in the minds of investors with the high volatility experienced in the past? FED’s tightened monetary policy also caused gold to have a difficult year.

Gold with bitcoin evaluating the existing comparison between cryptocurrencies and Goldman Sachs published a new report on this subject.

In the report, penned by analysts Mikhail Sprogis and Jeffrey Currie, it was stated that he expects gold to outperform Bitcoin in the long run and that gold is less likely to be affected by tough and tight financial conditions.

“Gold is less likely to be affected by tight financial conditions.

This also enhances the non-speculative use of gold.

On the other hand, when the leading cryptocurrency Bitcoin is still used speculatively, gold stands out as a useful portfolio diversifier.”

Goldman Sachs analysts, who see gold as a hedge against inflation and the depreciation of the dollar, likened Bitcoin to a risky technology company stock.

“The value of Bitcoin is determined by its potential use case in the future.

This makes BTC a more volatile and speculative asset compared to gold and other metals.

Because the systemic anxiety caused by several big players filing for bankruptcy has strengthened Bitcoin’s downward volatility.”

Finally, stating that tight financial conditions such as the tightening of the FED’s monetary policy are negative for Bitcoin, the bank said that both gold and BTCHe pointed out that despite the sharp decline of Bitcoin’s net speculative positions, there was no major change in gold despite Bitcoin’s 75 percent drop.

*Not investment advice.