Goldman Sachs, one of the world’s largest investment banks has announced that Bitcoin has outperformed all other investment classes in 2021. According to the bank,
In the year-to-date, Bitcoin’s leads other asset classes – gold, equities, bonds and oil, and the gap is widening. As of early March, Bitcoin had a return north of 70%, which was twice the gains of the energy sector, a sector that has also performed well in 2021.
The bank has also noted that Bitcoin is uniquely positioned to keep dominating its asset ranking all through 2021. This is informed by the prevailing market conditions whereby the stock markets are under high selling pressure, and the other markets are highly volatile too.
Goldman Sachs also note that there was a high likelihood of Bitcoin replacing Gold as a hedge against inflation. In a report on the issue, the bank noted that,
Gold continues to be the worst performing asset class in 2021. Investors are increasingly taking note of Bitcoin as a way to hedge against inflation. The asset has proven to be a viable hedge, and is up by 70%, while gold has lost 10% of its value in the year.
The bank recently did a survey that revealed 40% of its clients are invested in cryptocurrencies.