Goldman Sachs gives gold the edge over bitcoin, other cryptocurrencies

Let’s be honest: 2017 has not been a good year for Goldman Sachs. They have pretty much gotten everything wrong this year, whether it is stocks or industry analysis.

But they may have finally gotten something right in 2017.

Bloomberg reports that the Wall Street behemoth published a report on Monday that states gold is better than cryptocurrencies. When comparing all of the key characteristics of money, the yellow metal is a greater tool than bitcoin, ethereum, dogecoin and litecoin.

Analysts Jeffrey Currie and Michael Hinds write:

“Precious metals remain a relevant asset class in modern portfolios, despite their lack of yield. They are neither a historic accident or a relic.”

Despite bitcoin’s surge to $6,000 this year, gold is a sublime investment choice for both short-term and long-term objectives. Fear can be a factor for the short-term, while wealth can play an important role in long-term efforts.

According to the Goldman Sachs report, there are four key elements that the analysts looked at, and gold had three of them: intrinsic value, durability and unit of account. Portability was in bitcoin’s favor.

Goldman did acknowledge the blockchain technology, but it was not added to the firm’s analysis.

At the time of this writing, gold is trading at around $1,300, while bitcoin is valued at about $6,000.

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