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.
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.
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.
The investment bank said that precious metals are "still the best long-term store of value"
Source:
https://www.cnbc.com/2017/10/19/bitcoin-is-not-the-new-gold-goldman-sachs-says.htmlWhat are your thoughts?
Bitcoin and gold have some similarities but I don't want to compare both since bitcoin is a digital currency and gold is a precious metal.
But I still pick bitcoin over gold for long term store of value.
Bitcoin has seen lot of progress since it had started. Its price is also increasing continuously since it started. It has gained huge amount of popularity among people and is being used intensively. Although prices of bitcoin has defeated that of gold but still I dont think that it can replace gold and become the new gold because firstly, gold is a stable form of currency which means that its price does not change so often. Secondly, its a precious metal and has a physical entity. Thirdly, It is accepted everywhere in the world and can be converted into cash whenever needed. Lastly it does not need internet to work.