“Just as we claim that silver is the poor man’s gold, gold may become the poor man’s crypto.”
Damian Courvalin, Goldman Sachs’ head of energy research, told Bloomberg. In an interview he discussed the state of the metal market. Courvalin responded to a question about whether assets other than gold, such as cryptos and Bitcoin, are being used by investors to hedge against inflation. His answer: “Yes”
There’s still plenty of room for both now
“I think it’s really starting. We have seen that crypto and gold do not have to wipe out each other.”
“The value of crypto is its network, just as the value of oil is the fact that it is consumed. Gold doesn’t have that, just like diamonds and art. It’s just a defensive asset that holds its value fairly stably.
“Right now there may be enough wealth to invest in both. Mainly, I think, because that inflation signal is starting to get bigger.” Gold and Bitcoin will then both be bought as a hedge against inflation.
Institutional investors appear to be buying Bitcoin en masse
Also in October of this year, the global investment bank JPMorgan had already said that institutional investors are starting to buy Bitcoin. Perhaps because it is a better inflation hedge against gold. This sentiment can also be seen in the money flow in the stock markets.
More than $10 billion has flown from gold ETFs since the beginning of the year, according to JPMorgan. While more than $20 billion has been put into Bitcoin funds.