The Bitcoin equivalent increase (BTC) in 2020 won’t hurt traditional assets like gold, according to Goldman Sachs.

Bloomberg reported on December 18 in the market, saying, “One of the largest investment banks in the world, Goldman Sachs, has sent a note to investors assuring their clients that Bitcoin does not pose a real threat to gold,” believing it could exist, he wrote.

Goldman Sachs acknowledged that the continued rally in bitcoin could steal some of the demand from investors for gold, saying:

“The recent delay in gold in real exchange rates and the dollar has made some investors concerned that Bitcoin will replace gold as the preferred hedge against inflation. […] While some alternatives are underway, we do not see the growing popularity of Bitcoin as an existential threat to place gold as the last exchange currency. ”
With Bitcoin arriving on the new full-time system in December, global investors are increasingly turning to Bitcoin. Christopher Wood, global head of equity strategy at independent investment bank Jefferies Financial, has reportedly cut gold positions to buy more bitcoin.

According to a report by the Indian news agency Business Standard on December 18th, a prominent market analyst is cutting gold for the first time in several years. Wood wrote in a note to investors that his Bitcoin distribution makes up 5% of his portfolio:

“The actual weight of gold will be reduced by 50 per cent in the portfolio by five percentage points for the first time in several years with the money invested in bitcoin. If there is a significant drop in Bitcoin from the current level after the historic breakout above $ 20,000, the intention will be an increase. this situation “.
Wood plans to increase cryptocurrency exposure if a solution is found, according to the report. Nevertheless, the analyst maintained the same position as Goldman Sachs and remained bullish on gold. “This does not mean that greed and fear will give up on gold.” Wood said: “The yellow metal must rally again if the Fed remains deaf in the face of the dramatic cyclical recovery approaching the other side of the epidemic, in line with GREEDE’s baseline scenario and fear.”

Bitcoin reached another all-time high on December 17th, surpassing $ 23,000. At time of publication, Bitcoin is trading at $ 23,133, according to the Cointelegraph BTC price index. In contrast, gold prices fell on Thursday, with spot and futures contracting 0.3%. Gold lost about 10% from its all-time high in August of $ 2,076.

Source: CoinTelegraph