The financial sector has no love lost for Bitcoin and cryptocurrency. Especially major financial players are trying to keep people away from BTC right now. Goldman Sachs is one of those entities still on the fence about cryptocurrencies. For now, the bank still advises investors to buy gold over Bitcoin. An interesting stance, considering Bitcoin is worth four times as much.
The recent Bitcoin price gains have spurred quite a few different debates. On the one hand, there are more proponents of BTC than before. However, banks will also oppose cryptocurrency whenever they can. Goldman Sachs is no exception in this regard by any means. When it comes to looking at the key characteristics of money, gold trumps cryptocurrency. Those are the findings of Goldman Sachs Group Inc. Then again, it is in their best interest to keep people away from Bitcoin.
Some Interesting Advice by Goldman Sachs
No one denies precious metals have their role to play in the financial sector. It is a part of modern portfolios and will continue to be for quite some time. Gold doesn’t yield too many profits, though. Moreover, it is losing its “store of value” aspect as well these past few months. From a speculative point of view, bullion makes very little sense. Bitcoin, on the other hand, is a better store of value and will yield profits as well. It is far more volatile than bullion, though, that much is evident.
When financial turmoil looms overhead, bullion is still quite popular. It will always be, as it is more accessible compared to Bitcoin and cryptocurrency. Most people and investors struggle with the concept of buying Bitcoin. Such issues have been prevalent for quite some time now, and they aren’t being addressed. That said, demand for Bitcoin has never been higher than it is today. The recent bull run by the world’s leading cryptocurrency should not be ignored either, though.
It is evident Goldman Sachs wants to protect consumers from financial damage. Then again, advising them to invest in one thing over the other won’t necessarily achieve that goal whatsoever. People shouldn’t take financial advice from a company which has anything but a solid and unblemished reputation in finance. While they raise interesting points, it is not something most people can’t find out on their own.