Goldman Sachs: Gold will hit $ 2,300 by 2022. What about Bitcoin?
A depreciation of the US dollar as a reserve currency, along with investors looking for attractive alternatives, could boost both BTC and gold.
Leading investment banking company Goldman Sachs says the price of gold will rise 20% to reach $ 2,300 by the end of 2022.
The product hit new records on July 31 at more than $ 2,000 an ounce, but Goldman believes it still has a long way to go. According to a report cited by Bloomberg, the bank believes that the price of gold will rise to $ 2,300 in the next 12 months, a revised forecast that originally predicted $ 2,000, due to concerns about the position of the US dollar.
Analysts at Goldman Sachs stated on July 28 that a “record level of debt accumulation” by the US government AND “real concerns about the longevity of the US dollar as a reserve currency” had affected the price of the product. Gold is currently priced at $ 1,975 per ounce.
What helps gold, also helps BTC?
Goldman said that measures taken by the US government to lessen the economic impact caused by the pandemic, for example, stimulus payments, could easily lead to an increase in debt through currency degradation. The bank stated that such conditions would boost gold and silver prices.
However, many other alternatives to the fiat currency would be more attractive to investors, as the US dollar slowly loses its value as a reserve currency.
Cointelegraph reported on July 30 that Bitcoin (BTC) could be a better hedge against inflation than gold. Since March, the cryptocurrency has had a stronger negative correlation with the dollar than gold.
The crisis is global, the Latin American countries with a high index of people who work or work in the informal sector, do not have a livelihood, therefore they have to go out and find themselves a little money to buy what is necessary to survive. a vicious circle that is difficult to break, on the one hand the State forces them to “stay at home”, but they do not have help and the bills for water, electricity, telephone service continue to reach their homes, the productive apparatus is practically paralyzed, the solution is not seen in the short term. For this reason, those who have an economic resource invests a part in daily food and the most fortunate with some surplus, buy cryptocurrencies.
If we focus on the debt of the United States, the outlook looks frightening or worrying, the Federal Reserve continues to print Billions of dollars, to try to save an economy that was already collapsed before the start of the COVID-19 pandemic, money Fiat, distributed in aid to companies and the unemployed, has not caused what was expected, on the contrary, the crisis is worsening.
Right now there is a debate about the need to have an unconditional universal income coverage, which is independent of the conditions of people in the job market, in the level of income. This debate is beginning to take place in some Latin American countries, as it is also taking place in other countries in Europe or the United States. Everything goes through a slow bureaucratic system, meanwhile the ongoing financial crisis is not known for sure until when.
The cryptocurrency ecosystem is a bitcoin-blockchain technology, which has the possibility to offer a safe haven to investors, who want protection, the important thing is to study with awareness and know that it is simply a possibility, productive work is the complement, crises offer possibilities to innovate, create, solve and solutions will emerge. New announcements awaited.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.