Although Bitcoin may be “pinching some demand” from gold, Goldman Sachs says the “precious metal’s standing will endure.” This according to a recent Bloomberg article.

“Gold’s recent underperformance versus real rates and the dollar has left some investors concerned that Bitcoin is replacing gold as the inflation hedge of choice,” Goldman said in a recent note, but added, “we do not see Bitcoin’s rising popularity as an existential threat to gold’s status as the currency of last resort.”

The recent surge in Bitcoin, which passed $23,000 per token last month, has prompted some debate about its effect on gold’s status, the article reports, citing arguments by JPMorgan Chase that the rise in cryptocurrencies is coming at the expense of the precious metal.

Goldman argues, however, that institutions and wealthy investors avoid cryptocurrencies based on “transparency issues, while speculative retail investment causes Bitcoin to act as an excessively risky asset.” The bank asserts, “We do not see evidence that Bitcoin’s rally is cannibalizing gold’s bull market and believe the two can coexist.”