When Goldman Sachs falls for Bitcoin (BTC) and its cadets, while BTC suffers a crash. A new report from the investment bank reveals the latter’s stance towards cryptocurrencies, after a 180 ° turn.
Pros and cons: everyone to judge!
On May 22, 2021, the founder ofAike Personal-Financial.com, Alex kruger, gives a taste of the new report by Goldman Sachs slated for release on May 24, 2021. The report speaks positively, flatteringly, about Bitcoin and cryptocurrencies in general.
Cryptocurrencies are described there as “a new asset class” and “Bitcoin is now considered an investable asset. Does it present its own idiosyncratic risk, in part because it is still relatively new and going through an adoption phase? But clients and beyond treat it broadly as a new asset class, which is notable – it’s not often that we have the opportunity to witness the emergence of a new asset class.“.
Goldman Sachs demonstrates through the content of this report, its increased interest in cryptos. The bank even takes the time to define the top 16 cryptos in terms of market capitalization, Bitcoin until Aave (AAVE), Monero (XMR) and Algorand (ALGO), passing throughEther (ETH).
The report contains analyzes from the founder of Galaxy digital, Michael novogratz, and the CEO of Grayscale, Michael sonnenshein. The 2 personalities unsurprisingly defend cryptocurrencies as a new asset class.
Goldman Sachs is a good player, and has not only collected the proposals of ardent defenders of cryptocurrencies.
The economics professor ofNew York University and detractor of Bitcoin, Nouriel Roubini, also shared in the report his disagreement with the idea that a cryptocurrency without use, which does not have economic fundamentals, can be qualified as an asset or a store of value.
Roubini also questions the willingness of most institutions to invest in cryptocurrencies.
Covid-19 gives back sight, even to banks
One year ago, Goldman Sachs rejected the idea that cryptocurrencies are a viable new asset class.
The pandemic may have helped the bank to rethink its initial position. She announced in August 2020, the creation of her own stablecoin. She later indicated that she was looking to hire a vice president of digital assets.
The bank even started trading futures BTC in March 2021. She had done it for the first time in 2018.
Will the voice of Goldman Sachs be heard as the mainstream media take pleasure in denigrating a Bitcoin that has come close to $ 30,000? Anti-crypto institutions must remember that there is no worse deaf than the one who does not want to hear.
Fashion is good, but blockchain is the future, we agree, right ?! It’s a great opportunity and an evolving sector! On a daily basis, my job is to try to popularize cryptos / blockchains as well as possible, which seem to be far too technical.
The comments and opinions expressed in this article are those of the author alone, and should not be considered as investment advice. Do your own research before making any investment decisions.