Jeff Currie, Head of Commodities Exploration for Goldman Sachs, suggests the “digital gold” narrative for crypto belongings does not in shape — crypto is far more like electronic copper, in his see.
Throughout an job interview with CNBC Tuesday, Currie stated the possibility that arrives with cryptocurrencies signifies their worth is distinct from that of safe-haven property like gold, even though each are some thing of a hedge in opposition to inflation.
“The digital currencies, they are not substitutes to gold,” he explained. “If just about anything they’d be a substitute to copper, and I argue that due to the fact they are professional-threat.”
Bitcoin is correlated to the company cycle, according to Currie, since it is connected to an underlying payment structure. For that reason, it is a much better substitute for “danger-on inflation hedges.”
These kinds of inflation hedges, which include things like copper and oil, hedge towards “good inflation,” in accordance to Currie, which success from elevated demand. Gold, in comparison, hedges versus “bad inflation” which effects from a adjust in offer.