In its most recent forecast on safe-haven assets, Goldman Sachs predicts a protracted decline for the precious metal to the tune of “In gold we trust!” and believes it will perform better than Bitcoin in the long run. The American investment bank has gone so far as to make contentious claims about gold and bitcoin.
Bitcoin Magazine, which broke the news in a tweet, quickly saw the publication go viral, sparking debate among industry insiders.
Due to its well-known use and a few other qualities, the precious metal has been the object of everyone’s desires for almost the entirety of human history. This was true both during the period of barter and later when gold was designated as the standard value for trade.
The ore had other qualities that made it stand out. To begin with, it is a limited resource that requires time and effort to find or mine. While there is a finite amount of gold worldwide, it is extremely rare. It is rare, malleable, and easy to exchange.
In the long run, the value of gold tends to rise precisely due to the characteristics described above, allowing for a comparison with digital currency.
Bitcoin was created as a gold substitute and a freedom instrument to replace fiat, which is centralized in nature and thus subject to the will of Central Banks. The ability to move gold reserves during times of war was a challenge for the powerful, necessitating carefully thought-out plans and vital logistics, as opposed to Bitcoin, which only requires a wallet on a flash drive. Along with being completely decentralized and impervious to manipulation, Bitcoin differs from gold today and in the Gold standard.
The finite number of total Bitcoins (21 million) is the final element that makes crypto the logical evolution, even though the scarcity feature is also present in gold.