Goldman Sachs Has No Faith In Bitcoin, And Says the Price Will Never Make It Back to Its Better Days
Even with Goldman Sachs’ claims that they want to get involved in Bitcoin with their own trading desk, it seems that they are still on the fence about how far this crypto token will go. Their Investment Strategy Group developed an economic-outlook report for the middle of the year, in which they found that Bitcoin’s price is more likely to decline in the coming months. In fact, they expect it to exceed the 45% it has already fallen this year.
Sharmin Mossavar-Rahamani, the chief investment officer, said:
“Our view that cryptocurrencies would not retain value in their current incarnation remains intact and, in fact, has been borne out much sooner than we expected.”
He continued, saying:
“We expect further declines in the future given our view that these cryptocurrencies do not fulfill any of the three traditional roles of a currency: they are neither a medium of exchange, nor a unit of measurement, nor a store of value.”
The entire financial industry globally has always had a negative opinion about cryptocurrency and the way that blockchain technology supports it. In spite of this perception, these important additions to the industry have been responsible for more efficient databases, faster transactions, and better transparency between all parties. However, Goldman Sachs stands firm on their opinion that it will not impact any other kind of asset.
The report specifically notes:
“Importantly, we continue to believe that such declines will not negatively impact the performance of broader financial assets, because cryptocurrencies represent just 0.3% of world GDP as of mid-2018. In fact, we believe that they garner far more traditional media and social media attention than is warranted.”
Originally, Goldman Sachs announced their intention to get involved in a bitcoin trading operation back in May of this year. They even went as far as to organize a meeting between two of their executives and a member of the New York Times to talk about how they were working on approval and estimating the risk to their brand. However, at least for the time being, it seems that the operations will solely be limited to institutional investors.
Goldman Sachs will go out of business before #bitcoin dies.
— Phil Geiger (@phil_geiger) August 3, 2018