What are your thoughts?
Cryptocurrencies like bitcoin are not the "new gold," Goldman Sachs said in a note, advising investors that precious metals "remain a relevant asset class" in portfolios.
i can agree that bitcoin is not something you drop precious metals for. they have been around for a long time and have more solid prices. so "storing value" in gold for example, is much better than storing it in bitcoin.
but that doesn't change anything about bitcoin and how much potential it has. i say never drop gold because bitcoin is very volatile and despite all the profit that i have gained and i know i will gain in the future, i can not deny the higher risk that it has.
The analysts said that digital wallets, where people can store cryptocurrencies, are vulnerable to hacking, and virtual currencies also have "significant regulatory risks." For example, China recently banned cryptocurrency exchanges and put a stop to initial coin offerings (ICOs), the new way for start-ups to raise money by issuing digital tokens.
this part is completely bullshit.
it is like saying buying gold is not a good idea because someone can rob your house and take it from you!
and as far China and things like that are concerned, because bitcoin is decentralized and belongs to the whole world, one country pulling some shenanigans can not affect it.
Goldman also said that cryptocurrencies are subject to network or infrastructure risk during a crisis. For example, there was a "hard fork" this summer when bitcoin split to create a new cryptocurrency called bitcoin cash.
actually the BCH fork proved that bitcoin is much stronger than this. a
fork attack like BCH can not cause any permanent damage to it.
The investment bank said that precious metals are "still the best long-term store of value"
i see this mostly a combat between the old world and the new. and those belonging to the old not wanting to change and see the future is ahead of them.
it is surprising to read this from Goldman Sachs though. because they are heavily invested in bitcoin.