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Goldman Sachs: Bitcoin Is New Copper, Not New Gold

Tue, 06/01/2021 - 12:36
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Alex Dovbnya
Goldman Sachs says digital currencies are not substitutes for gold
Goldman Sachs: Bitcoin Is New Copper, Not New Gold
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Jeff Currie, global head of commodities research at Goldman Sachs, has rejected the idea that Bitcoin is replacing gold in a recent interview with CNBC International:

The digital currencies…they are not substitutes to gold. If anything, they would be a substitute to copper…They are pro-risk, risk-on assets.

Currie argues that Bitcoin is "definitely" a risk-on asset based on Goldman's trading history:

If anything, you would argue that Bitcoin substitutes against risk-on inflation hedges, not risk-off inflation hedges.

He explains that gold, as a risk-off asset, hedges bad inflation, which is observed when supply is being curtailed.

Ark’s Cathie Wood Says Bitcoin Could Be Today's Gold Standard

Gold crushed Bitcoin in May

When Bitcoin started eating away at demand for gold-backed exchange-traded funds in late 2020, Wall Street started crowning it as the "new gold."

However, the tide has turned in the yellow metal’s favor as of late. While Bitcoin logged its third-biggest monthly drop on record in May, gold was up seven percent within the same period—its best month since July 2020.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at