Goldman Sachs' head of commodities research, Jeff Currie, stated on Tuesday that cryptocurrencies are not a substitute for gold when seeking for an inflation hedge, but rather for copper.
Currie remarked that both gold and cryptocurrency have been viewed as hedges against rising costs on CNBC's "Squawk Box Europe."
While gold is considered a safe haven asset, both bitcoin (BTC, +3.01 percent) and copper are considered “risk-on” investments, according to him.
In the interview, Currie stated, "Digital currencies are not gold equivalents." "They would, in fact, be a copper substitute. They are risk-on assets that are pro-risk. They are risk-on inflation hedges, not risk-off."
Because of the weak US currency, gold has increased over $250 since April. Bitcoin has climbed by more than 25% in 2021, but has dropped by more than 25% in the last three months, according to CNBC.
“When you look at the correlation b/w bitcoin and copper, or a measure of risk appetite and bitcoin, you can see that it is strong, and we have 11 years of trade history on bitcoin, it is unquestionably a risk-on asset,” Currie said.