The Head of Energy Research at Goldman Sachs, Damian Courvalin, spoke to Bloomberg on Thursday, discussing the state of gold and crypto amidst global developments.

Amidst fears of inflation only continuing to increase, Courvalin can see funds starting to go from gold into Bitcoin. When asked if there are any tells whether investors are fleeing to other assets such as Bitcoin and crypto in an attempt to hedge against inflation woes, he responded saying:

I think it’s actually starting.

We’ve argued historically that crypto and gold do not have to cannibalize each other.”

The Goldman Sachs head added:

“It’s a fact, we have seen substitution recently.

Just like we argue that silver is the poor man’s gold, gold is maybe becoming the poor man’s crypto.”

Courvalin noted the threat of inflation and the solution that crypto offers, stating:

“At this point, there may be enough wealth to allocate to both, especially, I think, as that inflation signal is starting to be more pressing.

“The value of crypto is its network, just like the value of oil is the fact that it’s consumed. Gold, like diamonds and art, doesn’t have that. It’s just a pure defensive asset that can outperform over a significant period of time.”

The Goldman Sachs executive further commented that following China’s crackdown on cryptocurrencies, investors moved into gold.

Nevertheless, while gold remains a solid choice in an investment portfolio, Bitcoin’s popularity starts to surpass that of gold. In the beginning of October, Dallas Mavericks owner Mark Cuban, with a net worth of $4.3B, said that Bitcoin is “better than gold.”

In the same month, billionaire Chairman of Virgin Galactic and CEO of Social Capital, Chamath Palihapitiya, told CNBC that bitcoin has effectively replaced gold and that Bitcoin’s “market cap is just going to grow.”

A recently published report by Deutsche Bank confirms the narrative of Bitcoin taking the role of digital gold in the future. By enjoying a “first-mover advantage” over other cryptocurrencies, a bank analyst says they “potentially see Bitcoin to become the 21st century digital gold” and that this can last for centuries and remain largely uncontrolled by governments.

The post Goldman Sachs: Gold Losing to Bitcoin and Becoming “The Poor Man’s Crypto” appeared first on iGaming.org.

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