Goldman Sachs expects gold, with its real demand drivers, to outperform the highly volatile bitcoin in the long term, the bank wrote in a Monday research note.
Gold is less likely to be influenced by tighter financial conditions, meaning it is “a useful portfolio diversifier,” said Goldman, especially given that gold has developed non-speculative use cases while bitcoin is still looking for one.
Goldman’s analysis showed that while traders use gold to hedge against inflation and dollar debasement, bitcoin resembles a “risk-on high-growth tech company stock.”
The value proposition of bitcoin, which the bank called “a solution looking for a problem,” comes from the scope of its future real use cases, making it a more volatile and speculative asset than the precious metal….