LONDON — Cryptocurrencies are an alternative to copper — not gold — when it comes to hedging against inflation, according to Jeff Currie, global head of commodities research at Goldman Sachs.

Inflation is rising as the global economy recovers from the effects of the Covid-19 crisis as central banks keep monetary policy historically loose and demand outstrips supply on multiple fronts. The U.S. Federal Reserve’s preferred inflation gauge, the core personal consumption expenditure index published Friday, increased 3.1% in April from a year earlier, exceeding expectations.

Gold and crypto have been deemed as hedges against rising prices, with crypto bulls in some cases championing bitcoin as a modern-day replacement for bullion. Inflation hedges aim to protect the investor against a fall in the purchasing power of money due to rising prices.

Gold prices have risen almost $200 since the beginning of April to hit a four-month high, fueled by a weakening U.S. dollar and an increase in demand on the back of rising inflation expectations.

Meanwhile, cryptocurrencies have been on a wild ride. Bitcoin, for instance, is up more than 25% in 2021 but down more than 25% over the past three months.

Speaking to CNBC’s “Squawk Box Europe” on Tuesday, Currie said investors should not see digital currencies as a substitute for gold when looking at inflation hedges.

“You look at the correlation between bitcoin and copper, or a measure of risk appetite and bitcoin, and we’ve got 10 years of trading history on bitcoin — it is definitely a risk-on asset,” Currie said. He noted that bitcoin and copper act as “risk-on” inflation hedges, compared with gold, which is viewed as a safe haven, or “risk off.”