Both bitcoin and gold have a specific role to play in investors’ portfolios and, as such, bitcoin won’t take over gold’s market capitalization, nor will gold make the flagship cryptocurrency irrelevant.
According to a note from Goldman Sachs analysts reported on by CoinDesk, both assets serve a different role in investors’ portfolios, with gold remaining a defensive play for investors and bitcoin being a more “risk-on” investment.
The analysts added that because of bitcoin’s volatility, their roles are different. They wrote:
In an environment of broadband dollar weakness and still very low and negative real rates we do not see either asset cannibalizing each other and see enough room for both.
