Bitcoin Forum

Cryptocurrencies like bitcoin are not the "new gold," Goldman Sachs said in a note, advising investors that precious metals "remain a relevant asset class" in portfolios.

The analysts said that digital wallets, where people can store cryptocurrencies, are vulnerable to hacking, and virtual currencies also have "significant regulatory risks." For example, China recently banned cryptocurrency exchanges and put a stop to initial coin offerings (ICOs), the new way for start-ups to raise money by issuing digital tokens.

Goldman also said that cryptocurrencies are subject to network or infrastructure risk during a crisis. For example, there was a "hard fork" this summer when bitcoin split to create a new cryptocurrency called bitcoin cash.

The investment bank said that precious metals are "still the best long-term store of value"

Source: https://www.cnbc.com/2017/10/19/bitcoin-is-not-the-new-gold-goldman-sachs-says.html

What are your thoughts?

Bitcoin and gold have some similarities but I don't want to compare both since bitcoin is a digital currency and gold is a precious metal.
But I still pick bitcoin over gold for long term store of value.

What else could be the answer. They just posted the truth.
How can you hack a gold? You can only rob them and you have the chance to fight for it while in bitcoin once it is done then say goodbye to it. The physical form of gold is what makes it precious which bitcoin dont have.
Power of the internet and you will also have a problem.
I say investing with bitcoin is for risk takers. This is not something that is always safe like the banks. You will always be prone to attacks.

I`m pretty sure that Goldman Sachs owns bitcoins and they are starting to FUD again,hoping that the bitcoin
price will decrease under 5000 USD ,so they could buy more btc.
They are right about the major risks ,but forget to mention that the vulnerability against hacking is decreasing and cryptocurrency wallets and exchange platforms became more and more secure.

Gold is gold and bitcoin is bitcoin. They are two diferrent asset. Gold is the best metal asset and bitcoin is the best crypto asset. If you try to make the same between gold and bitcoin, it is impossible. Gold is tangible and bitcoin is intangible. How can they be the same. When we talk about the value, there are some aspects that both are good investments. Gold is good investment for long term, whereas bitcoin is also good crypto investment for long term and for short term. Think about the risk, bitcoin is more risky than gold. I think bitcoin drags more interest to young generation because bitcoin values as money or fiat.

It's not the new gold. It's a total different system. Gold will forever have a value and back up fiat. But Bitcoin doesn't need a physcial backing as it's proved over the years

Gold is not a good store of value. More gold is discovered all the time.
look at this for instance
http://www.mining.com/1-trillion-motherlode-of-lithium-and-gold-discovered-in-afghanistan/

and tell me why I should buy gold when new gold can be dug up from the ground?

bitcoin is much more rare!

I am a Bitcoin enthusiast and I believe in the future of cryptocurrency. However, I also agree with that statement coming from Goldman Sachs. The physical gold will always be valuable and will always be the real safe haven. Right now, Bitcoin has higher risks partly because almost all of us are speculators which is also understandable since Bitcoin is still relatively new.

The difference can be quite clear in discussing between the real gold and Bitcoin touted as the digital version of gold. The main difference is of course volatility and though some consider it as one of the disadvantages of Bitcoin it actually also attract many players into Bitcoin and depending on how we look at it because it can be good or bad maybe depending on the situation.

And lastly, in terms of earnings and ROI so far Bitcoin is beating the real gold that is why many fund managers are transferring some of their gold deposit to Bitcoin. In other words, there is nobody stopping anybody to invest in the real gold and also getting involved with cryptocurrency as one of the investment tools or baskets.

As they say, never put your baskets into just one single egg...or is it the other way around?

Well that is a fact bitcoin can never be the new gold, unlike gold bitcoin can never be tangible. Gold's worth is determined by its purpose and use, while for bitcoin it is determined by its demand. As long as there are many people who wants a piece of the coin it will have a worth. Gold was there for a long time and time will come a new gold will be made.

Before salt was the basis of wealth. The word salary even came from it because it is used to pay workers, it has big value before because of its use but now salt is only on your kitchens.

of course it is not! bitcoin is something much better than gold!

while gold is just an element which happens to have value, bitcoin is a digital currency which is also decentralized and it has been a revolution since it has already changed the way currency system works.

before bitcoin nobody could even think of a decentralized money that no government controls! now we have bitcoin and thanks to it another thousands of other altcoins.

As far as I know Bitcoin or any other currency never got hacked. Just services built on top of it!!!
And yes Bitcoin is not like Gold,as it is not physically available. Bitcoin is digital gold!!!
Whatever Goldman Sachs may say, firstly I believe they sit on a shitload of metal papers and are scared in some way, and secondly people will continue flocking into Bitcoin!!! Statements like this make me even more bullish on the long run!

i can agree that bitcoin is not something you drop precious metals for. they have been around for a long time and have more solid prices. so "storing value" in gold for example, is much better than storing it in bitcoin.

but that doesn't change anything about bitcoin and how much potential it has. i say never drop gold because bitcoin is very volatile and despite all the profit that i have gained and i know i will gain in the future, i can not deny the higher risk that it has.

this part is completely bullshit.
it is like saying buying gold is not a good idea because someone can rob your house and take it from you!
and as far China and things like that are concerned, because bitcoin is decentralized and belongs to the whole world, one country pulling some shenanigans can not affect it.

actually the BCH fork proved that bitcoin is much stronger than this. a fork attack like BCH can not cause any permanent damage to it.

i see this mostly a combat between the old world and the new. and those belonging to the old not wanting to change and see the future is ahead of them.

it is surprising to read this from Goldman Sachs though. because they are heavily invested in bitcoin.

Bitcoin can not be compared with gold.
Bitcoin is an innovative technology + high-yield investment tool. Bitcoin today is more than gold.
Bitcoin is not a standard for supporting the fiat, this is its plus for investors.
A huge minus for use is the voluntariness, the price for bitcoins is unstable.
Goldman Sachs say one thing and do another.

Maybe they think that bitcoin and gold are very valuable things. From that side I agree but overall I prefer that gold and bitcoin are very different. really as you say gold is a short-term investment and bitcoin is an investment that can be used in a short time and a long time. I also prefer bitcoin because bitcoin can give me many opportunities to earn income, besides bitcoin can also be used as a currency that has a certain value.

You can't really argue with this, Gold has literally been around for ages, and it has remained valuable. Bitcoin hasn't even existed for a decade. That being said, I consider Bitcoin to be digital gold.

Yes I also agree with this that bitcoin is not a new gold. Tangible and intangible thing has differences in its existence. People more prefer to that thing which they can feel, touch or even see. And those things which are virtual is not so valuable for many people.

Therefore in this day lots of people prefer gold instead of bitcoin, because gold is more secure than bitcoin. Gold is the real currency.

i never get the fascination for comparing bitcoin and gold. they have nothing in common. with gold being physical and being around as long as humanity ;) and bitcoin being digital and decentralized and being around for 8 years, it is practically a toddler versus an ancient comparison.

Goldman BallSachs is full of sh1t. Can they tell you what will happen with your gold investments if governments decide to confiscate it again? < Making gold ownership illegal >

The United States Gold Reserve Act of January 30, 1934 required that all gold and gold certificates held by the Federal Reserve be surrendered and vested in the sole title of the United States Department of the Treasury.

FDR's 1933 Gold Confiscation was a Bailout of the Federal Reserve Bank. 20,000 metric tons of gold were 'circulating naked' in 1933.” President Franklin Delano Roosevelt's 1933 executive order outlawing the private ownership of gold in the United States was arguably unconstitutional. <So this has happened before>

Why would they push people to invest into something that the government can take away? Because they are working with the government.

Bitcoin cannot be confiscated by anyone, if you store it in the correct manner. ^smile^ YOU should protect your wealth, the governments of this world are in serious debt and your wealth can be transferred to them, with a push of a button.

Funny how bias this man has, in his first name it appears to me “Gold”. Sometimes in a boxing match those have big mouths is hurting inside. How pathetic this “financial experts” can be and how they make some statements to the things in the first glance they judge before trying to understand. Hoping that he would change his mind as he don’t want to be as so depressed as Jamie Dimon.

Yes i do agree with him,bitcoin is not new gold,but what i can say is bitcoin is more than the gold.
I donot know why some people are still negative about bitcoin,bitcoin and blockchain is not for just trading and investing this technology have the capacity of make the world fully digitize so its way bigger than gold.

Not again. Now even he might try his level best to drop the price of Bitcoin and when he will be successful in doing that he will also buy tons of Bitcoins just like others did .

Totally right.

Bitcoin is a currency in its "cleanest" form - pure information. It must be used to become valuable. Without the 10.000 BTC pizza (and obviously other pioneer transactions) it wouldn't be worth nothing. The more we use it, the more it will be valued/priced.

And gold is overrated. I think its current function as "store of value" won't last for more than 30-40 years. Then its price will adjust drastically to its "industrial" value, as we will have much better systems to "store value". Bitcoin may be part of it.

Bitcoin has seen lot of progress since it had started. It’s price is also increasing continuously since it started. It has gained huge amount of popularity among people and is being used intensively. Although prices of bitcoin has defeated that of gold but still I don’t think that it can replace gold and become the new gold because firstly, gold is a stable form of currency which means that its price does not change so often. Secondly, it’s a precious metal and has a physical entity. Thirdly, It is accepted everywhere in the world and can be converted into cash whenever needed. Lastly it does not need internet to work.

Ya I think so.You can expect to see the low price at the November.But it's not a permanent,it will again increase.Use that dip and brought the lot of bitcoin as much you can.If so,you will get good profit after the November.But you have to keep for some time.You have to inverse the unused money in that ,to work independently and get good profit.

fluctuations are pretty common in bitcoin, the reason for these dips and rises are not important. and speaking about bitcoin versus gold, all these short term fluctuations become irrelevant. what matters is the security and the long term performance of that thing. and bitcoin has the most security that you can wish for and so far it has been performing phenomenally! it is still considered risky because of the big swings but that risk is decreasing as the market grows bigger.

 Cryptocurrencies like bitcoin are not the "new gold," Goldman Sachs said in a note, advising investors that precious metals "remain a relevant asset class" in portfolios.  

Well they're both used as a storage of value, and are both independent of local currencies. They're both mined, and they're both finite. That's as far as the comparisons go though.

There's a lot of gold fixing. Not easy to put on the side, not easy to split. In the long run, it has the function of maintaining value, but it will not increase. Bitcoin can handle the above shortcomings. So I think the first choice is bitcoin.

It's kind of interesting how all these investment bankers are popping up to talk about bitcoin practically every week.

It's almost like they are trying to move the price with their comments...

Gold is Gold while Bitcoin is Bitcoin, there should be no argument if Bitcoin replaced Gold because there is no way I can wear Bitcoin around my neck but in terms of investment, Bitcoin remains as a good invest but the risk is high compared to investing in Gold. We may see an increase of interest with investing in Bitcoin but that doesn't mean it will replace Gold. There are people who still prefer to invest in Gold over Bitcoin.

Well bitcoin has defenitely defeated gold in terms of price but still I don’t think that bitcoin will be able to replace gold and become the new gold itself as firstly, gold is a precious metal and has physical identity onthe other hand bitcoin is digital currency. Then gold is stable and is centralised. On the other hand bitcoin is not stable and decentralised. Then gold is accepted everywhere whereas there are still many places which do not accept bitcoin. Lastly gold is way to much popular than bitcoin. So it is way to much in usage as compared to bitcoin.

This is right that bitcoin is not the new kind of gold because the gold has its own uniqueness and bitcoin is not like gold and it is created because of its own purpose and vision and not to be basing in gold. Bitcoin is bitcoin and it is not an improved version of gold. Bitcoin will make people rich in a faster way rather than the gold which will give you only slow process in reaching a rich lifestyle.

Look whos talking again, Goldman issuing another FUD to make bitcoin price decrease as it was now 5700 USD, another strategy to lower the value and they will buy on the dip, It is true that bitcoin investing are only for risk taker where we can not compare it to Gold that have its physical form, but if you want a fast growing investment switch to bitcoin. Goldman sach own bitcoin even they dont say it. It is like what James Dimon last month and then turn away on the table stating that he will not talk about bitcoin anymore.

But as the technologies grow we lessen the risk of being attacked, and there is less risk by buying bitcoin than gold, gold is always been riskier for people who have a less security in their house. Anyways what is their differential is that bitcoin has more and lots of features than gold, you cannot transfer gold without spending too much and it is riskier to transfer gold from one to another. And the problem about bitcoin is that there are too many scams.

Bitcoin can never be gold as much as gold can never be the same woth bitcoin. GOld is something that can never lose its value and would always be valuable. While in crypto it always depend on the stock market on a lot of variances and it needs to be secured as it is probe to hacking and manilulation.

I don't trust anything that big banks say since their first concern is their own profit and wellbeing so this statement is merely in this function and nothing more.

I think there is no match between gold and bitcoin. Both have different values and features. Gold is more secure and trustworthy for almost all the people in the world and on the other hand bitcoin is more profitable than gold. So many people prefer bitcoin to increase their investment in a short time rather than waiting for a long time. Therefore I think both are important in their places.

Exactly. Couldn't have said it better. To be honest I don't even think Goldman believes what they're saying. They just have a hidden agenda. Gold is gold and bitcoin is bitcoin and Goldman is investing in both.

Goldman is right you can't just compare bitcoin to a gold, they have very huge differences on each other bitcoin is a merely best digital asset and new to this world with market capitalization of 100 billion while gold is very precious tangible asset and it has one of the oldest form of the asset in the world we have using gold since medieval times and it has market captalization of 7 trillion but they have both in common which is good investments

Goldman Sachs can say whatever they want to say but making reference to what is not comparable is what I see as making an uninformed decision. Who said bitcoin is trying to be like gold or wanting to replace gold. Gold is not even a competitor to start with as they both serve different primary objective even though I agree that their objective might clash in the area of keeping as an asset hoping for appreciation in the future.

Whenever I read something from Goldman Sachs or JP Morgan Chase or any massive, institutionalized financial organization about Bitcoin, I usually just assume the opposite.   They always have an anti-Bitcoin bias and hence cannot be trusted for objective opinions, views or conclusions.  The intent here, of course, is to disparage Bitcoin by making a false comparison, kind of like saying a tricycle is not a Ferrari. 

Bitcoin is not the new gold because it's much better. It's not something they can steal or seize as easily as fiat. With fiat you have that false feeling of security, because you think that there are other people responsible for your money's safety. You think that if some professionals are being paid to make it safe you have nothing to worry about and worst case scenario will have someone to blame. But when you think about it it's really better not to have people to blame but rely on yourself. What difference does it make if there's 10 or 100 people shaking their heads and saying sorry when your money is gone? People at Goldman are those head shakers that want you to invest but if anything goes wrong will wash their hands of it and lawyer up.

Well, some of what they have commented on is right, but it's for the wrong reasons. They say that a lot of the virtual wallets are prone to hacking, which is actually really rare, provided that the wallet is trusted and has a backing for it already. It's the exchanges which seem to have abysmal network security and often fail to recover from hacks, although some do. They're right about regulatory risks, although that's only for government lapdogs. The network is only at a risk when people are trying to fork, which has happened once in ~8 years. Will be twice soon.

PMs being a store of value remains the same; accurate. Bitcoin is a volatile growth asset right now.

We cannot blame people who thinks that it is like gold.. and I won't lie it is... bitcoin is good investment too if you know how to use it and how it works
Gold in other hand is asset and yess it is much better long term.. but bitcoin and its price value was very high making people attract ... and I wont lie I am one of them.. every year bitcoin price increases and down are not new to cryptos right .. he has own opinion and it is good... both of them are good and have basis it is depends where you want to put your money

Gold can't be fully compared to bitcoin. Gold is a physical asset and its value is always rising up. While bitcoin is intangible and its value may rise or fall. We can only talk about the advantage of bitcoin over gold which is the former can give us huge income in an instant.

I just can't take anything that comes out of their mouth serious, they always have other motives.