Goldman Sachs calls cryptocurrencies an analogue of copper for investors

Jeff Curry, head of the bank’s commodities division, claims that cryptocurrencies cannot replace gold as it is a pro-risk asset.

Cryptocurrencies cannot replace gold as an investment vehicle, and if we compare them with something, it is more likely to be copper, said Geoff Curry, head of commodities at Goldman Sachs, in an interview with CNBC . Digital currencies are pro-risk assets, he said.

"Digital currencies are not substitutes for gold. If anything, they would be a substitute for copper, they are pro-risk, risk-on assets. They are substitue for risk on inflation hedges not risk off inflation hedges" #crypto $BTC

Jeff Currie, Head of Commods at Goldman Sachs pic.twitter.com/Qc1yXnDfvo

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At the end of May, Goldman Sachs recognized Bitcoin as an asset class. Then the bank reported on the growing demand for cryptocurrencies among institutional investors and asset managers.

Earlier, Goldman Sachs was the first among the largest US investment banks to create a department for cryptocurrency trading. The new department has already successfully traded two types of bitcoin-related derivatives.