Cryptocurrency and Copper Parable By Goldman Sachs Executive

Cryptocurrency and copper parable by the Goldman Sachs executive. Jeff Currie likened cryptocurrencies to copper.

The US bank Goldman Sachs, which has recently come to the fore with the steps it has taken in the field of Cryptocurrency, made a new assessment about cryptocurrencies. Jeff Currie, head of commodity research at Goldman Sachs, said he likens cryptocurrencies to copper, not digital gold.

"Digital Currencies Cannot Replace Gold..."

In an interview with CNBC yesterday, Goldman Sachs executive stated that cryptocurrencies carry serious risks due to high volatility and therefore cannot be compared to assets such as gold, which is seen as a safe haven against inflation. Currie said: "Digital currencies are not assets that can replace gold. If they are going to replace anything, it would be copper. Because copper is a much more risky product. Bitcoin also moves depending on the business cycle due to its underlying payment structure. Therefore, it is a better example of risky assets purchased during inflation periods." In addition to these, Currie stated that while assets such as copper and oil are hedging instruments against 'good inflation' created by demand, gold is a means of protection against 'bad inflation' resulting from the change in supply.