There is a flight from gold to the crypto market, notes the head of energy research at the bank.
Cryptocurrencies are replacing gold as a means of protection against inflation, has recognized a Goldman Sachs manager, Damian Courvalin, noting the flight of investments to the crypto market from the precious metal.
In statements to Bloomberg, Courvalin, head of energy research at U.S. investment bank, was clear when asked whether he was noting that investors have used assets beyond gold, such as Bitcoin or other cryptocurrencies, to protect against Consumer price growth: “Actually, I think this is happening.”
Recalling an earlier forecast from his bank that “cryptocurrency and gold should not cannibalize each other,” he acknowledged as a “fact” that “a substitution has recently been registered.”
The expert mentioned as one of the tests the influx of investments in gold detected after China introduced restrictions against the crypto market this year.
“Just as we affirm that silver is the gold of the poor, gold is perhaps becoming the cryptocurrency of the poor,” admitted the expert.
However, Courvalin said there is currently “too much wealth to invest in both” assets now that “the inflation signal has become more pressing.”
This Wednesday, the price of bitcoin marked a new high above $69,000, according to data from CoinGecko, after the U.S. Department of Labor put inflation at 6.2% in October, its maximum level since November 1990.
