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Goldman Sachs executives: Lack of Bitcoin regulation hinder traditional investors, and rising bitcoin prices have not led to lower demand for gold

A Goldman Sachs executive said "there is no evidence" that the price of bitcoin has reduced the demand for gold.

Investors are now worried that bitcoin is reducing demand for gold in the market, said Jeffrey Currie, Goldman Sachs global head of commodities research, told the Financial Times he thinks the two groups have a different investor base. In addition, he claims that the lack of bitcoin regulation is a barrier to traditional investors.

In spite of this, the bitcoin price has shown remarkable growth in the past month, especially after the CBOE global market launched its bitcoin futures trading on Sunday. In fact, the price of gold showed a downward trend.

However, Currie asserted that gold and bitcoin have different characteristics and that the recent price changes are due to the nature of the asset requirements.

He said:

"We think Bitcoin is attracting more speculative money than gold."
He also said gold ETF holdings are at their highest levels in the past four years, "with no evidence of a massive loss of gold demand."

While lack of liquidity and high volatility may make bitcoin "cause for concern," it may not be appealing to investors looking for diversification and hedging gold returns.

Ten days ago, Goldman Sachs CEO Lloyd Blankfein said he believes it is too early for the bank to consider Bitcoin tactics because they do not think bitcoin is a value store.

In November of this year, Blankfein said he was "dissatisfied" with Bitcoin, but he was open to the cryptocurrency.