Some financial experts in the industry believe that the world’s most famous cryptocurrency Bitcoin has the potential to outshine the precious commodity Gold and can replace it. However, the major United States-based investment banking firm Goldman Sachs negates this point of view and says that Gold is absolutely safe from the leading digital currency.
At the beginning of the month of November, the flagship cryptocurrency entered into its bull run and since that time, it is performing amazingly well. Bitcoin traded bullish almost throughout the entire past month and it carried out its bullish rally in the month of December as well. In the present month, Bitcoin’s price value has even flowed in an upward direction with a rapid pace. This bullish rally helped the top-ranked digital coin to record a new all-time high by topping above the price figure of $24,000 for the first time in its entire history.
The New York-based investment bank, however, has said that no matter how impressive the current price surge of Bitcoin is, it does not pose a threat to the so-called safe-haven asset Gold which is completely safe from the leading cryptocurrency.
Goldman Sachs noted in its recent research that some of the investors have concerns regarding the fact that the primary cryptocurrency is going to replace gold very soon. However, the bank says that there is no such proof out there that shows that the growing popularity of Bitcoin (BTC) is posing a threat to Gold. The bank said that Bitcoin is not going to take Gold’s market share. However, the bank acknowledged the fact that both of these assets can exist together side by side.
The bank said in its research note:
“While there’s been some substitution, we do not see Bitcoin’s rising popularity as an existential threat to gold’s status as the currency of last resort. We do not see evidence that Bitcoin’s rally is cannibalizing gold’s bull market and believe the two can coexist.”
On the other hand, JP Morgan Chase, the famous American multinational investment banking and financial services firm has a different point of view regarding Bitcoin. Recently, JP Morgan said that Bitcoin is continuously attracting the attention of investors. Strategists at JP Morgan recently predicted a potential demand of $600 billion for Bitcoin.