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Old 07-07-2021, 15:51
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KostiaFM KostiaFM is offline
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Default Re: Daily Market Analysis by ForexMart

Protective Assets: Gold or Cryptocurrency?

Goldman Sachs experts are confident that in the future Ethereum will be able to take the place of bitcoin as a means of saving. According to the bank, Ether has more potential than bitcoin, due to the extensive ecosystem and more diverse options for the practical application of this cryptocurrency.

At the same time, neither bitcoin nor ether can yet overtake gold, which remains the leader among all defensive assets. Since cryptocurrencies, unlike gold, are too volatile, which is incompatible with the concept of a safe haven asset. However, experts clarify that gold can be viewed as a defense against inflation, and cryptocurrency – against inflationary risks.

Moreover, the very competition between cryptocurrencies also prevents them from squeezing gold in the status of a defensive asset. And this is not the whole list of «disadvantages» of digital assets. For example, analysts at the Bank of Singapore consider volatility, low confidence and lack of regulation to be the main obstacles to the spread of digital assets as a means of saving. However, if these problems are solved, bitcoin and ether may well replace gold.
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