Wall Street’s renowned investment firm Goldman Sachs didn’t even include Bitcoin in its weekly global asset class earnings rankings until the end of January, when cryptocurrencies quietly appeared on the charts.
However, according to the latest “US Weekly Kickstart” report published by Goldman Sachs, as of March 4, Bitcoin’s annual return was about 70%, about twice as much as the next-ranked competitor, the’Energy sector’, 35% return. It is said to have appeared.
As the recent US stock sale has brought the Standard Poor 500’s annual return to nearly zero, such a comparison could be even more favorable for Bitcoin.
So far, crude oil and energy have had higher risk-adjusted returns than Bitcoin this year.
In addition, gold is recording a rather negative rate of return, and gold futures have fallen by about 10% this year.
Goldman Sachs believes this is because cryptocurrencies such as bitcoin are recognized as’online gold’, and a large amount of money that will rush to the gold market due to inflation concerns has flowed into the cryptocurrency market.
Currently, bitcoin is seen as a potential inflation hedge by many investors in cryptocurrency and traditional markets, especially as central banks around the world are pouring trillions of dollars in stimulus to stimulate markets from the recession caused by the coronavirus. Yes.
Some market officials believe that bitcoin will further break away from gold’s market share.
According to a survey, about 40% of Goldman Sachs customers are exposed to cryptocurrency.
Meanwhile, Goldman Sachs’ money management department argued in May 2020 that “cryptocurrency is not a suitable investment for customers, and is a beneficiary of speculation that is worse than the notoriety of the Dutch tulip wave.”