As the competition between Bitcoin (BTC) and gold continues, a new report comparing BTC and gold has arrived from Goldman Sachs.
According to Coindesk, Goldman Sachs analysts compared Bitcoin and gold in terms of return and volatility. According to Goldman Sachs’ analysis, gold performed better on a risk-adjusted basis compared to Bitcoin.
Bitcoin (BTC) has gained over 40% this year, outpacing major stock indices, gold and even oil, which has recently surged amid geopolitical tensions.
However, it lagged behind gold in risk-based return. Accordingly, despite Bitcoin's 40% increase on an annual basis, gold left BTC behind in risk-adjusted return.
According to analysts, the higher risk-adjusted return of gold compared to BTC explains why gold is seen as a more safe haven.
Goldman analysts added that Bitcoin's stellar performance is not enough to compensate for its volatility.
“BTC’s risk-adjusted return remains below 2%, while gold’s is around 3%. This highlights gold’s attractiveness as a safe haven.
“Moreover, this relatively low risk-adjusted performance confirms skeptics’ long-held view that Bitcoin is too volatile to be a safe haven like gold.”
Goldman Sachs also raised its gold ounce forecast to $2,900 by 2025.
*This is not investment advice.