While a recent read about Bitcoin (BTC) from Goldman Sachs was considered worthless by several investors, they decided to hear it and read it anyway simply.
The consumer and investment management division of Goldman sachs recently published about how cryptocurrencies, including Bitcoin, are not an asset class.
They cite several reasons like Bitcoin not generating cash flow like the bonds, not generating earnings through exposure to global economic growth, not providing consistent diversification benefits given their unstable correlations, not dampen volatility given historical volatility of 76%, and not showing evidence of hedging inflation.
Goldman Sachs reinstated on how they believed that the security whose appreciation is primarily dependent on whether someone else is going to pay a higher price for it as not being a suitable investment for their clients.
Hedge funds look at trading cryptocurrencies as appealing due to its high volatility; however, Goldmansachs expressed that it does not constitute a viable investment rationale.
Sydney Ifergan, the crypto expert, tweeted: “I liked a comment citing a psychological scam which read: don’t buy it/while I buy it…don’t sell it/while I sell it. Very apt for the Goldman Sachs theory on #Bitcoin (BTC).”
Bitcoin is right now proud because one of the largest banking institutions in the world are criticizing the usage of Bitcoin as the Bitcoin use case is already replacing them. Many feel this is good for Bitcoin. Goldman sachs, in reality, promoted Bitcoin while trying to criticize it.
Reportedly, there has been prolonged withdrawal of funds from the exchanges. However, 60% of all Bitcoin has not moved on the blockchain for nearly a year, which is an indication of significant hodling.
Bitcoin (BTC) Strategic Importance
Tyler Winklevoss tweeted: “Goldman Sachs: In 2019, $2.8 billion in Bitcoin was sent to currency exchanges from criminal entities. Fun Fact: Goldman Sachs facilitated $6 billion in money laundering via the 1MDB scandal between 2012-13. Double standard much?”
Charles Hoskinson responded, stating, “Goldman Sachs: We do not recommend bitcoin on a strategic or tactical basis for our client’s investment portfolio…” What they are really saying: “Please don’t buy the stuff that puts us out of business. We are disintermediated and lose control.”
Dan Held tweeted: “Drop Sachs. Get Sats.” Some of them are planning to create a trending topic on Drop Sachs!
Many feel that ignoring Bitcoin will be like ignoring the greatest performing assets in human history. No matter who says what about Bitcoin, whether positive or negative, a lot of awareness about the token has already happened.
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