{"id":143262,"date":"2024-11-26T11:30:40","date_gmt":"2024-11-26T09:30:40","guid":{"rendered":"https:\/\/cryptodnes.bg\/en\/?p=143262"},"modified":"2024-11-26T02:08:06","modified_gmt":"2024-11-26T00:08:06","slug":"gold-set-to-rise-but-crypto-expected-to-outperform-says-ex-goldman-sachs-exec","status":"publish","type":"post","link":"https:\/\/cryptodnes.bg\/en\/gold-set-to-rise-but-crypto-expected-to-outperform-says-ex-goldman-sachs-exec\/","title":{"rendered":"Gold Set to Rise, But Crypto Expected to Outperform, Says Ex-Goldman Sachs Exec"},"content":{"rendered":"

He highlights that the massive U.S. debt burden, especially the increasing interest payments, will continue to drive the precious metal\u2019s value higher. However, Pal made it clear that while gold could see gains, its potential for growth will be far surpassed by that of digital assets, particularly cryptocurrencies.<\/p>\n

In a recent interview on the Wealthion<\/em> podcast, Pal explained that both gold and cryptocurrencies are tied to similar economic factors, mainly the debasement of currencies, but crypto holds a much stronger advantage.<\/p>\n

He emphasized that digital assets, unlike gold, offer much higher beta\u2014meaning they are more volatile\u2014and therefore, higher risk-adjusted returns. According to Pal, this makes cryptocurrencies a more attractive investment for those seeking greater long-term profits, despite the higher risk involved. In comparison, he views gold as a safer but less rewarding option.<\/p>\n

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Pal also shared his thoughts on the future of recessions, noting that with the persistent trend of currency debasement, economic downturns will be increasingly difficult to come by. He explained that recessions are typically triggered by credit events, where collateral loses value in relation to debt, creating a cycle of economic contraction.<\/p>\n

However, by continually debasing the currency, the underlying collateral remains stable, which is why the U.S. avoided a recession in 2022 despite some economic challenges. Pal argued that without the Covid-19 pandemic, the 2020 recession would not have occurred, pointing to how central banks\u2019 ongoing monetary policies have redefined the typical triggers for recessions.<\/p>\n