bitcoin goldman sachs

Goldman Sachs has recently stated in a note that they do not see cryptocurrencies like bitcoin as the “new gold” as some have proclaimed. They then added that investors should invest in the precious metal as a safeguard rather than bitcoin to keep their money safe.

The note to investors stated that “the use of precious metals is not a historical accident – they are still the best long-term store of value out of the known elements.”

The firm also stated that the rise of cryptocurrencies in recent times has not taken note of geopolitical tensions and other factors. As many nations attempt to regulate the coin, it could mean a lowering of the price. Goldman continued to state that bitcoin is not a good store of wealth over gold. They stated that “gold wins out over cryptocurrencies in a majority of the key characteristics of money.”

One of the main issues with having a digital wallet is that they are prone to thievery in the form of hacking. As they can be hacked, countries like China have attempted to regulate this market. China has stated that there are “significant regulatory risks,” associated with buying cryptocurrency, and that they will attempt to stop its use within the country. China succeeded in this by shutting down the use of initial coin offerings or ICOs as a method of fundraising within the country. They also proceeded to shut down many of the countries digital currency exchanges.

Goldman has warned of certain scenarios with the coin such as a “hard fork” or other risks to price. While many attempt to regulate the market on cryptocurrency, it is a known-fact that there is large potential in the market. With the large potential for gains comes an equally large potential for losses, therefore it remains a volatile market for now.

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