According to the findings of a report by Goldman Sachs, Bitcoin is one of the best performing investments in 2023 due to its superior standing relative to other assets.
According to a screenshot taken from Goldman Sachs’s year-to-date asset returns report, the company came to the conclusion that digital assets such as Bitcoin have performed significantly better than traditional asset classes such as MSCI, energy, information technology (IT), and even health care.
January has not even come to a close
Even though we are only one month into 2023, the preeminent global investment banking and securities business giant, Goldman Sachs, has already named Bitcoin as one of the best performers for the year. Statements like these encourage bullish sentiment around the crypto asset; yet, we must remain cautiously optimistic.
Goldman Sach’s statement about a month ago
The expert analysts at Goldman Sachs stated in December that they anticipated gold would beat Bitcoin over the long term. They discovered that gold is less likely to be influenced by tighter financial circumstances and referred to it as a valuable portfolio diversifier. Goldman Sachs further added that gold is a precious metal that has clear non-speculative use cases while Bitcoin is still searching for one.
As a result of increased interest rates by the Federal Reserve, risk assets had a sharp decline in 2022. However, gold prices have remained relatively stable over the past year, while the price of Bitcoin has dropped by 75% from its all time highs, mirroring the performance of high-growth technology businesses.
Final Thoughts
Bitcoin is considered a top performer in risk assets because it has demonstrated strong returns over a relatively short period of time. Since its inception in 2009, the price of Bitcoin has grown exponentially and has shown a high level of volatility, which can attract investors looking for high-risk, high-reward opportunities.
However, large banks and institutions are likely to promote or degrade certain assets as part of their own agenda in order to make a profit or use people as exit liquidity. They may invest heavily in a particular asset and then recommend it to their clients, potentially leading to increased demand and higher prices for that asset. They can also degrade certain assets in front of the media as part of their overall investment strategy to buy assets at lower prices. It is crucial to remember that these financial institutions have a legal and moral duty to look out for their own interests as well as those of their clients and shareholders.