Goldman Sachs examined the benefits of gold and Bitcoin in a diversified portfolio it shared. According to Goldman Sachs bitcoin (BTC) value varies based on its potential utility and future adoption in the cryptocurrency industry. For these reasons, Bitcoin is more sensitive to changes in interest rates than gold, according to the company. Due to this detail that Bitcoin has, the desired stability and value can be gained in the long run.
According to the report, the “end of the decade of easy money” with interest rates rising last year has led to a decline in speculative positions in gold and Bitcoin. However, while gold maintains its value compared to the previous year; BTC fell 75% in line with tech companies.
According to the report; tight financial conditions are critical enough to hinder user adoption of Bitcoin. This too cryptocurrency reduces the likelihood of a repeat of the strong returns of the currency unit over the last ten years. Volatility will likely remain high until we develop more uses.
As Koinfinans.com reported, leading analysts made a similar comment, but underlined that there is no guarantee that the usage scenario will increase.
Goldman SachsIn the same report, he added that gold “structurally could benefit from higher macro volatility and the need to diversify stock risk.”
The banking giant underlined that crypto adoption is supported by easy financial conditions. As a result, low liquidity also increases the incentive for risky assets. Speculative interest in Bitcoin is likely to decline as tight financial conditions are expected.
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.