Goldman Sachs does not see the popularity of Bitcoin as an existential threat to gold as a currency of last resort
As Bitcoin has gained ground as ‘Digital Gold’, many experts have debated whether it is a replacement for the precious metal rather than a complement. Goldman Sachs is committed to the coexistence between Gold and Bitcoin.
Bloomberg reported that Goldman Sachs in a note to investors emphasized that Bitcoin is not an existential threat to Gold. Specifically, it noted that they do not see “evidence that the rally in Bitcoin” could destroy Gold.
We believe that the two can coexist, they noted. Certainly Goldman Sachs argues that “the recent underperformance of gold against real rates and the dollar has left some investors concerned that Bitcoin is replacing gold as the inflation hedge of choice.”
So, “while some substitution is taking place, we do not see the growing popularity of Bitcoin as an existential threat to the status of gold as a currency of last resort.”
According to data from Glassnode, roughly 10% of the Bitcoin supply has not moved in 10 or more years. Specifically, the data shows that 1,857,721 Bitcoins have remained “stationary”.
So, with a total of 18,573,268 BTC in circulation, this is 10% of all Bitcoins mined.
Martti Malmi is one of those who sold most of his crypto before 2012. Currently, it would be worth about $ 1.2 billion. Malmi is one of the first Bitcoin developers.
The FED reported that it has no plans to curb the stimulus packages for the coronavirus and will therefore continue to print money for the next few years. Specifically, each month it will buy public debt for at least USD 80 billion.
It also projected that unemployment and inflation will not reach pre-pandemic levels until at least 2023, it could take longer.
Indirectly, this represents a catalyst for the crypto leader that has managed to position itself as an active refuge from the economic measures of the FED.