The global head of commodities research at Goldman Sachs, Jeff Currie, has dismissed claims that Bitcoin could replace gold as a store of value.
During a recent appearance of CNBC international, Currie explained that neither Bitcoin nor any other cryptocurrency stands a chance at beating gold, a narrative that is becoming quite popular in crypto cycles. He said:
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.
The Goldman exec also argues that Bitcoin is a risk-on asset based on his firm’s trading history. Meanwhile, he considers gold to be a risk-off asset that hedges bad inflation.
If anything, you would argue that Bitcoin substitutes against risk-on inflation hedges, not risk-off inflation hedges.
While Currie’s claims are definitely up for debate, gold outperformed Bitcoin in May. Following Tesla’s announcement that it was no longer going to accept Bitcoin as a payment option for its cars in May, the leading digital asset began to drop. This was further exacerbated by reports that China was planning to crack down on Bitcoin mining and trading. Consequently, Bitcoin saw its third-biggest monthly drop in May. Gold, on the other hand, is up by seven percent within the same period.