As Bitcoin has gained ground as ‘Digital Gold’, many experts have debated whether it is a replacement for the precious metal rather than a complement. Goldman Sachs is committed to the coexistence between Gold and Bitcoin.
What will the relationship between Bitcoin and Gold be like?
Bloomberg today reported that Goldman Sachs in a note to investors emphasized that Bitcoin is not an existential threat to Gold. Specifically, it noted that they do not see “evidence that Bitcoin’s rally” could destroy Gold.
“We believe that the two can coexist,” they noted. Certainly Goldman Sachs argues that “The recent underperformance of gold against real rates and the dollar has left some investors concerned that Bitcoin is replacing gold as the inflation hedge of choice.”
So that, “While some substitution is taking place, we do not see the growing popularity of Bitcoin as an existential threat to the status of gold as a currency of last resort”.
10% of Bitcoin’s crypto supply has been flat in 10 years
According to the data of Glassnode, about 10% of Bitcoin’s supply has not moved in 10 or more years. Specifically, the data shows that 1,857,721 Bitcoins have remained “stationary” as of yesterday.
So, with a total of 18,573,268 BTC in circulation, this is 10% of all Bitcoins mined to date.
The relevance is that at first glance we could say that they are about hodler. However, this may not be entirely true as there is a chance that most are simply missing. That is, no one can use them.
Crypto regret on seeing Bitcoin gains
We all would have liked to invest in Bitcoin in the past, especially with current information available. While, to others, we would have liked not to have sold in what we see today was a bad moment.
Martti Malmi is one of those who sold most of his crypto before 2012. Currently, it would be worth about $ 1.2 billion.
Malmi is one of the first Bitcoin developers. In fact, having started something greater than your personal gain is your comfort.
FED again gives momentum to leading crypto
The FED reported that it has no plans to curb the stimulus packages for the coronavirus and will therefore continue to print money for the next few years. Specifically, each month it will buy public debt for at least USD 80 billion.
Likewise, it projected that unemployment and inflation will not reach pre-pandemic levels until at least 2023, it could take longer.
Indirectly, this represents a catalyst for the crypto leader that has managed to position itself as an active refuge from the economic measures of the FED.
In a few lines …
- Coinbase CEO warned that the crypto community should be wary of the “Bitcoin and crypto market rally.”
- Visa published a document that studies how the Central Bank’s digital currencies (CBDC) could be used offline.
- Edward Snowden, persecuted and American exile, offered his support for the crypto leader on Twitter.