Pass it forward

Bitcoin is a commodity with many similarities to gold, and the volatility that has sparked investor relate stanch mainly from the current lack of liquidity, said Jeff Currie, global heads of state of stocks research for Goldman Sachs Group Inc.

” I don’t see why there is all this enmity to it ,” Currie said in an interrogation on Bloomberg Television. Bitcoin is” not much different than golden” because it doesn’t have liability attached to it by definition, like a security.

The cryptocurrency transcended $11,000 Wednesday, labelling an virtually 12 -fold addition for the year, before receding later in the day. In comparing, gold has descended about 12 percent this year. Investors are divided about bitcoin, with the likes of Warren Buffett announcing it a” real bubble ,” and billionaire venture capitalist Peter Thiel saying analysts are underestimating it. Nobel Prize-winning economist Joseph Stiglitz said ” bitcoin is successful only because of its potential for circumvention, need of omission ,” and ought to be outlawed .

Currie said most people who trade bitcoin don’t see the currency as interchangeable with gold, and that there are important differences between the two.

” You look at golden that has $8.3 trillion of amber above dirt — that’s real liquidity ,” he said.” Primary banks self-control an enormous amount of the supply of gold, which does not make it a complete equivalent between bitcoin and gold .”

Bitcoin on Wednesday surpassed $ 11,000 in such matters of hours after hitting the $10,000 milestone as buyers shrugged off increased alarms that the largest digital currency is an resource foam. The cryptocurrency subsequently precipitated amid a surge in freight at online exchanges that led to sporadic outages.

” Lack of liquidity is what’s generating that volatility that has everybody concerned about bitcoin ,” Currie said.” Given that statu of liquidity and the size of the market in gold, it will never have the same volatility as bitcoin .”

Bitcoin” fits the same mold as many of the other commodities ,” Currie says

” The real innovation here is in the ledger, in the blockchain , not in the bitcoin itself”


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