Goldman Sachs Believes Gold Will Outperform Bitcoin

Goldman Sachs believes that Gold is a more useful reserve than Bitcoin.
Goldman Sachs plans to lay off part of its present workforce.

The America-based Goldman Sachs, the second largest investment bank, said that the most precious metal, Gold, will outperform the largest cryptocurrency, Bitcoin, in the long term. Goldman Sachs called it “Gold is a useful portfolio diversifier.”

In a recent report, Goldman Sachs stated, “Bitcoin’s volatility to the downside was also enhanced by systemic concerns as several large players filed for bankruptcy. Tighter liquidity should be a smaller drag on Gold, which is more exposed to real demand. Moreover, Gold may benefit from structurally higher macro volatility and a need to diversify equity exposure.”

Earlier the investment bank had planned to downsize its existing workforce.

David Solomon, CEO of Goldman Sachs, pointed to the benefits of blockchain growth in regulated financial institutions. “Used correctly, blockchain can support responsible innovation across the financial industry,” he tweeted.

Cryptocurrencies Are Riding the Volatility created by CPI report

The recent Consumer Price Index (CPI) report caused prices of major cryptocurrencies including BTC and ETH to rise. Bitcoin jumped by around 4%, trading at $17,776 at press time. Ethereum’s price rose by nearly 5%, trading at $1,320 at press time. US stocks also rose after the announcement of the CPI report.

So far, the Federal Reserve has announced four 75-basis point hikes in a bid to tame record-high inflation. Analysts predict that future interest rates will rise by 50 basis points or 0.50 percent.

Goldman Sachs collaborates with MSCI and Coin Metrics

Goldman Sachs intended to spend $10 million (USD) to buy or invest in crypto companies after the downfall of one of the largest crypto exchanges, FTX. The ‘Big 4’ firm and the second largest investment bank came up with an innovative idea that will classify crypto assets and tokens on the platform. The partnership between Morgan Stanley Capital International (MSCI) and Coin Metrics will introduce a new theme called “Datonomy” that will help increase transparency in the digital asset ecosystem.

MSCI has 50 years of experience in research, data, and technology. On the other hand, Coin Metrics organizes the world’s crypto data to make it more transparent and accessible. This great collaboration will help in the growth of the new invention, “Datonomy.”

It provides “a consistent, standardized way to help market participants view and analyze the digital asset ecosystem, creating an increased level of transparency.” This new theme will help monitor crypto asset market trends and analyze the upcoming risks.