Jim Rickards on why gold vs. bitcoin is a phony debate… Goldman Sachs pits bitcoin against gold — which wins?
I write and speak a lot on gold. In contrast — and this surprises some people — bitcoin is my least favorite topic. I’m made my views known many times.
Still, interviewers love to get into the “gold versus bitcoin” debate. I continually get dragged into discussing bitcoin in interviews on TV, radio and the internet. So I discuss it whether I want to or not.
From my perspective, you might as well discuss gold versus watermelons or bicycles versus bitcoin. In other words, it’s a phony debate. I agree that gold and bitcoin are both forms of money, but they go their own ways.
There’s no natural relationship between the two (what traders call a “basis”). The gold/bitcoin basis trade does not exist. But people love to discuss it, and I guess Goldman Sachs is no different.
Goldman Sachs has released a new research report that comes down squarely on the side of gold as a reliable store of wealth rather than bitcoin, which is untested in market turndowns.
Source/More: Gold vs. Bitcoin: Goldman Sachs Weighs In – The Daily Reckoning