The report cited Goldman’s Tuesday note to clients which, while bullish on ether, denied cryptos’ superiority to gold when it came to taking the top spot among safe-haven assets.
“Gold is competing with crypto to the same extent it is competing with other risky assets such as equities and cyclical commodities,” the note said. “We view gold as a defensive inflation hedge and crypto as a risk-on inflation hedge.”
Goldman also said competition among cryptocurrencies represented another risk factor that prevents the nascent asset class from being safe places to park one’s investment.
The comments echo last month’s statements from the bank’s consumer and wealth management division, which concluded that cryptocurrencies were “not a viable investment” for diversified portfolios.