Experts at US investment bank Goldman Sachs warn against acquiring Bitcoin as an asset designed to secure the investment portfolio against the negative effects of inflation. Cryptocurrencies, according to them, behave much more like technology stocks than as virtual gold.
Better than Bitcoin
Gold will be much lower likely to be affected by adverse circumstances in financial markets. “This means it is a better vehicle for portfolio diversification than Bitcoin,” US investment bank Goldman Sachs said, according to Reuters.
Lower gold speculation
According to its experts, gold has evolved into an investment asset that is not so much used for speculation as Bitcoin. The latter, on the other hand, comes from the comparison as a very speculative asset. Goldman Sachs also said that gold appears to be an asset to hedge against inflation, whereas Bitcoin behaves more like a high-risk technology stock.
“Bitcoin’s downward volatility has been stimulated by systematic problems and the fall of several large players in the cryptocurrency market,” the bank said, referring to the recent crash of the FTX cryptocurrency exchange and others that preceded it.
