Earlier this week we saw some articles which stated that investors are dumping Gold and buy Bitcoin instead. This was indicated by the fact that both Gold as bond yields were moving lower, were normally a contrary movement should be expected. At the same time Bitcoin was in a very strong up move.
According to a Golman Sachs executive there is no evidence at all that suggests bitcoin’s price gains have reduced demand for gold.
But which statement is true? In my opinion it is logical to assume that (some) investors are moving their capital from gold to Bitcoin. Why shouldn’t they…? Bitcoin has seen a massive growth in 2017 and is still on the move were gold is relatively stable (compared to Bitcoin). Of course investors are moving some of their capital! I Believe Goldman Sachs is still largely dependent on their gold reserves and other people investing in it and therefore are trying to protect the gold market.
However, due to the massive market cap of gold (>7trillion) the impact should be limited. This also indicate a massive opportunity for Bitcoin. Imagine what would happen if Bitcoin would become the new gold… a trillion dollar market cap would move into Bitcoin with massive growth as a result.
What do you believe?
For more background info I refer to the articles below:
https://www.coindesk.com/bitcoin-isnt-sapping-demand-for-gold-says-goldman-sachs-exec/
https://www.cnbc.com/2017/12/11/investors-are-dumping-gold-to-buy-bitcoin-says-strategist.html
Even no matter what amount of Gold capital goes into bitcoin, the gains would be felt much more by the Bitcoin community than those holding Gold. Why hold Bitcoin when there is Steem?
LOL so true, with huge bitcoin fees , Steem much easier to use !
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