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.
Well bitcoin has defenitely defeated gold in terms of price but still I dont think that bitcoin will be able to replace gold and become the new gold itself as firstly, gold is a precious metal and has physical identity onthe other hand bitcoin is digital currency. Then gold is stable and is centralised. On the other hand bitcoin is not stable and decentralised. Then gold is accepted everywhere whereas there are still many places which do not accept bitcoin. Lastly gold is way to much popular than bitcoin. So it is way to much in usage as compared to bitcoin.