Goldman Sachs CEO predicts Bitcoin could rival gold as a store of value

Goldman Sachs CEO David Solomon said bitcoin could serve “very well” as a store of value similar to gold.

Solomon’s comments come at a time of growing debate about bitcoin’s potential as a reserve asset and store of value.

Bitcoin’s potential as a store of value

In an interview with CNBC on July 30, Solomon said that he has never been a critic of BTC, clarifying that his main concern has been its speculative nature. However, he highlighted the promise of the underlying technology, calling it “super interesting” and capable of reducing friction in an increasingly digitized financial system.

When CNBC’s Joe Kernan asked about the possibility of bitcoin serving as a reserve asset like gold, Solomon replied, “There could be a case for a reserve of value.”

Under Solomon’s guidance, Goldman Sachs has played an active role in the cryptocurrency space. In 2021, the giant established a crypto trading table.

At the time, Solomon expressed a belief that BTC could rival and surpass the market capitalization of gold, although he still saw it as a speculative asset. Several Goldman Sachs executives also previously argued that bitcoin’s volatility hinders its ability to be a reliable store of value.

Despite these mixed messages, Goldman’s commitment to digital assets remains clear. The company plans to launch three tokenization projects by the end of the year, targeting both the US and European markets.

Bitcoin as a reserve asset

At the 2024 Bitcoin Conference, MicroStrategy CEO Michael Saylor expressed his belief that the first country to start accumulating BTC through fiat currency issuance could gain an economic advantage over the rest.

Saylor suggested reallocating treasury reserves of gold and bonds to bitcoin, issuing currency and debt to buy the cryptocurrency, and implementing laws favorable to BTC ownership.

Saylor added that nations, especially those with significant debt, could use bitcoin to address their economic challenges by shifting reserves from short-term assets like gold and bonds to longer-term digital assets.

Similarly, Senator Cynthia Lummis argued that bitcoin could help the United States manage its growing debt. In line with this, he has proposed a bill that would make bitcoin a strategic reserve asset solely to reduce the national debt.

On July 30, Lummis said on social media that the US national debt has exceeded $35 trillion and suggested that BTC could be a solution to controlling it.

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