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Digital Currency Revolution Series: Goldman Sachs Exhibits Reluctance In Bitcoin For Asset Portfolio
The analysts at Goldman Sachs seem to have been reluctant in the cryptocurrency space (especially bitcoin or any cryptocurrencies).
In a research report of CoViD-19 Series, they emphasized on the US economic outlook & implications of current policies for Inflation, Bullion and Cryptocurrency markets, wherein it should have been perceived as a worthwhile investment for the firm's clients as they explained its price, daily & annualized volatilities and market capitalization (refer above chart).
This is perhaps because they also highlighted some shortcomings of cryptocurrency investments: Despite that most cryptocurrency ledgers are permanent and auditable public records, cryptocurrencies nevertheless abet illicit activities such as Ponzi schemes, ransomware, money laundering, and darknet markets.
In a client-facing call yesterday, the reputed IB described a case that cryptocurrency is not a viable investment vehicle under the current economic circumstance. "Cryptocurrencies including bitcoin are not appropriate as an asset class," as per their analysis.
"We also believe that while hedge funds may find trading cryptocurrencies appealing because of their high volatility, that allure does not constitute a viable investment rationale," the chief investment officer for wealth management at Goldman Sachs, Sharmin Mossavar-Rahmani, stated during the call.
In addition, they pointed out that the cryptocurrency infrastructure is still immature and prone to hacking or inadvertent loss.
As the mainstream adoption perceives Bitcoin (BTC) as a non-correlated asset-class and carries scepticism,there have been mixed bag of stances revolving around cryptocurrency gamut. Right from the JP Morgan’s chief Jamie Dimon’s U-turn from his critic statement back in 2018, “cryptocurrency as a fraud, terming digital currencies as a novelty and worth nothing" to his confession after JP Morgan’s keenness of investment into blockchain and crypto-currencies.
While many crypto optimists are perceiving the current trend of bitcoin prices has ended corrective mode as they reckon that price trend of any asset class wouldn’t always be in bullish nor in bearish mode constantly. On that perspective, Mr.Peter Brandt, who is supposed to be a veteran trader was in the news for terming Bitcoin’s big slump in January of 2018, has taken aback from his previous stance and called BTC is likely to shoot up for $100,000 mark.