On November 14th, Goldman Sachs Energy Research Director Damian Courvalin talked about the prospects of gold and cryptocurrencies in an interview with Bloomberg recently.
He was asked if he saw any evidence. Investors use other assets such as bitcoin and cryptocurrencies other than gold to hedge against inflation risks.
Courvalin said: “I think this has actually begun. Historically, we have always believed that cryptocurrencies and gold don’t have to cannibalize each other.”
He admitted that “this is a fact, we have recently seen an alternative,” he further elaborated: “just as we think silver is the poor people’s gold. Gold may be becoming the poor people’s cryptocurrency.”
Courvalin continued: “At this point. There may be enough wealth distributed to both, especially as inflation signals begin to become more urgent.”
He pointed out: “The value of cryptocurrency lies in its network. Just as the value of oil lies in the fact that it is consumed.
Gold, like diamonds and works of art, does not have this. It is just a purely defensive asset that can perform well for a long period of time. “