According to Goldman Sachs, Bitcoin is not a real currency , and they will be able to announce that before they have even studied the concept further. In their report, a Goldman Sachs analyst called it a “speculative” asset —a claim that has already caused a lot of confusion. In a statement, Goldman Sachs claimed that Bitcoin is “not an investment” since “[i]t does not have a stable value, is not regulated, and is extremely volatile.”
In early 2018, the price of Bitcoin surged above $19,000, making it the best performing major currency in the world. As the price of Bitcoin stayed high through the end of the year, the price of other cryptocurrencies like Ethereum, Ripple, and Litecoin also rose in value. These increases have some analysts questioning whether Bitcoin, Ethereum, or another cryptocurrency could be an “investable asset class”.Wall Street investment bank Goldman Sachs has once again reversed its stance on bitcoin as it attempts to determine the asset’s investment status. The investment bank has changed its mind about cryptocurrencies again, releasing a report earlier this week saying they are not a wise investment. Report titled Digital Assets: Beauty Is Not in the Eye of the Beholder concluded that bitcoin is not a long-term value or an asset class. This is contrary to their report of 21 March 2001. May titled Cryptocurrencies : A new asset class? which was generally supportive of the idea and even approached Matthew McDermott, global head of digital assets at Goldman Sachs : Bitcoin is now considered an investable asset. It is a rebuttal to another presentation by Goldman Sachs last year, in which several of the bank’s analysts gave five reasons why bitcoin is not an investable asset class. In a new report, the bank’s investment strategy group says it wants to play it safe when it comes to cryptocurrencies. We have refrained from repeating the positive and negative hype surrounding this ecosystem because we don’t want customers to be swayed by a cacophony of claims, many of which are unsubstantiated, the report said. He went on to say that bitcoin is not digital gold, but that gold itself is not a reliable store of value: The argument that bitcoin and cryptocurrencies are a digital version of gold adds no value to bitcoin and other cryptocurrencies, as gold itself is not a consistent or reliable store of value. Goldman Sachs’ investment strategy group should sign its crypto currency research with the words Have fun staying poor. pic.twitter.com/TiedRBxWhI – Alex Kruger (@krugermacro) 14. June 2021 The report also suggests that the blockchain itself cannot be trusted. He concludes that cryptocurrencies and blockchain technology rely on layers of trust that can be undermined. After analyzing different valuation methods and applying our strategic multi-factor asset allocation model, we concluded that cryptocurrencies are not a wise investment for our clients’ diversified portfolios. Related: Goldman Sachs is preparing a bitcoin product for its clients Apparently, there are differences of opinion within the bank about its approach to cryptocurrencies. In May, Goldman Sachs led a $15 million investment round for blockchain analytics company Coin Metrics. Monday the 14th. In June, it was announced that McDermott confirmed that the investment bank was expanding its crypto trading division to include options and futures on Ethereum.
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