Bitcoin's rising popularity is not an existential threat to gold's status as the currency of last resort, as per the Goldman Sachs. The world's most popular digital asset jumped to all-time highs above $23,000 this week as its extraordinary 2020 rally continued.
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Gold and Bitcoin to coexist, it further said, while the largest digital currency may be pinching some demand from the oldest of havens, the precious metal’s standing will endure.
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The token's price gained 16% across just three days, bringing its year-to-date gain to over 200%. We do not see evidence that Bitcoin's rally is cannibalising gold's bull market and believe the two can coexist," Goldman added.
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The report further says, we do not see Bitcoin’s rising popularity as an existential threat to gold’s status as the currency of last resort. Bitcoin has more than tripled this year, while gold’s up 24% after setting a record above $2,075 an ounce in August.
