Yesterday, multi-trillion-dollar asset management firm Goldman Sachs held a call regarding Bitcoin that was especially scathing.
Although the firm trashed cryptocurrencies, there are a number of positives that come out of the situation.
Goldman Sachs Slams Crypto In Call With Chief Investment Officer
Over the weekend, news broke that Boston-based Goldman Sachs was planning to hold a call with its Chief Investment Officer on the US economic outlook.
Topics discussed in the call included the US dollar as it faces the worst inflation yet, and how potential hedges such as gold and Bitcoin would come into play.
RELATED READING | GOLDMAN’S CHILLING S&P 500 CRASH PREDICTION MAKES BITCOIN VULNERABLE IN MID-2020
But on the morning of the call, slides leaked on Twitter revealing what Goldman Sachs really thought about the asset. In fact, they don’t think cryptocurrencies like Bitcoin are an asset class at all.
The firm further points out that Bitcoin doesn’t generate cash flow like bonds or through earnings on economic growth. They say there are not even diversification benefits due to unusual and unstable correlations.
Strangest of all, they claim the digitally scarce asset in which only 21 million will ever exist, shows no evidence of being a hedge against inflation. Yet the company believes that gold does serve this function.
They also ironically call out the dollar’s annual estimated inflation rate of 2% reducing today’s dollar value to just 82 cents in 18 years.
No Such Thing As Bad PR: Bitcoin To Benefit From Firm’s Attack on Asset Class
Goldman Sachs may have slammed Bitcoin and crypto, but other institutional mainstays beg to differ. Recent deals between previous BTC-pundit JP Morgan with Coinbase and Gemini show institutions are softening toward the asset class, that’s “not an asset class.”
The attack on crypto also is positive for Bitcoin in other ways.
The first-ever cryptocurrency just received exposure to some of the wealthiest individuals in the world. These high-class investors rely on insight from the likes of Goldman Sachs. But ultimately, they make their own decisions on where to put their money.
Many of these high-wealth individuals may not have considered Bitcoin as a monetary hedge until the call. Upon doing their own research, it could lead to a better understanding of cryptocurrencies.
RELATED READING | BITCOIN HAS BEEN PROFITABLE FOR OVER 95% OF ITS EXISTENCE
They may learn of the hard-capped BTC supply that was recently reduced further with the halving this month.
There’s a popular phrase that there’s no such thing as bad publicity. This statement is also true for Bitcoin.
The cryptocurrency’s initial use case was buying drugs on the dark web. But because the technology held such promise it has over the years become a respected financial asset.
Where it also today, is the focal point of a Goldman Sachs call to some of the world’s most important investors. Ten years ago, the world didn’t even know what it was.
So while Goldman Sachs sought to discourage investors from buying into Bitcoin with all the recent hedge against inflation talk, in the end, they’ve only further cemented the asset class as something to pay close attention to.
Featured image from Shutterstock origin »
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The post Can Bitcoin Surpass Previous Cycles? Analytics Firm Highlights November ATH Potential of Key Cryptos appeared first on CaptainAltcoin.
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Coinspeaker
Head of South African Firm Slapped with $3. 4B Fine for Bitcoin Fraud in US
The CFTC claimed that the firm had proprietary software that was expected to recognize significant trading gains for investors who contributed to the Bitcoin pool, but in reality, there was no such "bot" in use.
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Business Intelligence software firm MicroStrategy has announced plans to purchase even more Bitcoin, a move that has brought the firm under the radar of many crypto analysts as the firm’s Bitcoin bank is already off the roof.
British asset management firm Ruffer reportedly said its bitcoin investment has generated about $1. 1 billion in profit. The firm says bitcoin has been “a wonderful store of value” and it is still optimistic about the cryptocurrency in the long term.
The publicly listed firm Microstrategy purchased more bitcoin according to a tweet from the company’s chief executive officer Michael Saylor and a recent Securities and Exchange Commission (SEC) filing.
U.K.-based crypto firm BCB Group is looking to provide corporations with a way to put Bitcoin on their balance sheet by launching a dedicated treasury.
On Tuesday, the cannabis firm Synbiotic SE, a publicly-traded company in Germany that’s listed on the Frankfurt Stock Exchange and Xetra, has announced it is leveraging bitcoin to hedge against the euro.
Bitcoin has come a long way... gone are the days when people used BTCs to buy pizzas! Recently, a UK-based private airline firm said that it received 19% of its yearly revenues from customers who paidThe post UK jet firm: 19% of travellers paid for tickets in Bitcoin appeared first on AMBCrypto.
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Getting the right words to the right people is critical for any firm. In this digital age where information flows at the speed of light, letting users and potential backers/clients of the latest happenings in a firm can be a make it or break it situation.
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The post JP Morgan Analyst Calls For Wall Street Foray As Bitcoin (BTC) Stabilizes At $3,400 appeared first on Ethereum World News.
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Bitcoin price started a fresh upward move above $100,000. BTC is facing resistance at $103,000 and might aim for an upside break. Bitcoin started a decent upward move above the $100,000 zone. The price is trading below $103,200 and the 100 hourly Simple moving average.
Bitcoin price settled above the $100,500 resistance zone. BTC is consolidating gains and might aim for a fresh increase above the $105,000 zone. Bitcoin started a downside correction from the $106,800 zone.
Bitcoin price started a short-term downside correction from the $106,250 zone. BTC is consolidating above $100,000 and might aim for a fresh increase. Bitcoin started a downside correction from the $106,250 zone.
Bitcoin price is gaining pace above the $100,000 zone. BTC is rising and might accelerate higher if it clears the $102,000 zone. Bitcoin started a decent increase above the $100,000 zone. The price is trading above $100,500 and the 100 hourly Simple moving average.
Bitcoin price is consolidating losses below the $95,500 zone. BTC is showing bearish signs and might struggle to recover above the $95,800 level. Bitcoin started a recovery wave from the $91,150 zone.