Goldman Sachs expects gold, with its real demand drivers, to outperform the highly volatile bitcoin in the long term, the bank wrote in a Monday research note.
Goldman's analysis showed that while traders use gold to hedge against inflation and dollar debasement, bitcoin resembles a"risk-on high-growth tech company stock." Although investors' willingness to explore the decentralized currency aided bitcoin adoption, the bank forecast financial conditions will become tighter.
While net speculative positions in both the assets fell sharply over the last year, gold is marginally up year-on-year against bitcoin's plunge by 75 per cent, the bank noted.
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