[2017-12-14] Goldman Sachs: Bitcoin Is Not A Competitor For Gold

[tokenzone]

The rush around Bitcoin and the low gold indicators force many to wonder whether cryptocurrencies reduce the demand for gold. According to experts at Goldman Sachs Group Inc., the answer is negative. Although Bitcoin shows high volatility and low liquidity compared to gold, its market value of $ 275 billion is relatively insignificant compared to gold reserves of $ 8.3 trillion, analysts Jeffrey Kerry and Michael Hinds wrote in a note for customers on December 11.

They reported (read more): https://tokenzone.io/all-posts/goldman-sachs-bitcoin-is-not-a-competitor-for-gold

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1715176235

[Iranus]

The good thing about gold as a store of value is that most people own at least a small amount of gold already - it's useful in electronics, jewelry and other things which are likely to be consistent across different societies.

There's also the fact that it doesn't tarnish and it can last a long time.

Bitcoin could definitely be useful for this purpose but it's certainly not even close to being a significant threat to gold yet.

[Yaunfitda]

I will stick to my believed that there are really Gold investors who are flocking into crypto market from behind. Of course they are not dumping their gold investments to shift to bitcoin. Its better to hold them both are leverage or something like a hedge in economic crisis. Gold has already a proven record on that.

The last major and widely hedge of gold is during WW2. As for bitcoin, I think we can consider Venezuela and Zimbabwe as case studies for using bitcoin to help them out in each respectively economic turmoil.

There's already a lot of thread and debate about Gold and Bitcoin. Won't go that further. But if I'm given the chance to choose, I will have them both.  . It's not greed, its more of a contingency plan more than ever on my end.

[gentlemand]

The good thing about gold as a store of value is that most people own at least a small amount of gold already - it's useful in electronics, jewelry and other things which are likely to be consistent across different societies.

In the entirety of my very long life I have only ever met one person who owned any gold for investment purposes, and even then that wasn't physical gold.

It simply doesn't cross the mind of the average person. It may well do in places where their currency is shit and banking is wobbly, but not first worlders. They do stocks and savings accounts. I can see it completely bypassing a whole generation who'll eventually go straight to crypto.

[Iranus]

The good thing about gold as a store of value is that most people own at least a small amount of gold already - it's useful in electronics, jewelry and other things which are likely to be consistent across different societies.

In the entirety of my very long life I have only ever met one person who owned any gold for investment purposes, and even then that wasn't physical gold.

That's my main point.  They don't know or care that they have gold, but they have it.

That means that they don't need to own gold for speculative purposes - they already have it anyway.  If there's any crazy scenarios that a lot of gold bugs and crypto enthusiasts think are likely to happen, gold will be more useful because people will already own some of it.

Obviously there are other things which people would own as well, but gold is superior to most of them since it doesn't deteriorate or tarnish easily at all, so people would still have it after a long time and they could use it in society.