Hello!
A leaked slide from a client presentation of Goldman Sachs shows what are they thoughts regarding Bitcoin. In general they state that Bitcoin and cryptocurrencies are nos an asset class. According to the document, their main reasons are the following:
- They do not generate cash flow like bonds.
- They don not generate earnings through exposure to global economic growth.
- They do not provide consistent diversification benefits given their unstable correlations.
- They do not dampen volatility given historical volatility of 76%.
- They do not show evidence of hedging inflation.
Are you fucking kidding me? These are the reasons?
The last 2 are hilarious from my point of view. Given the last volatility of the markets due to Covid and the historical decrease in value of the US Dollar inflation, it doesn't make sense to use these as arguments against Bitcoin.
You can find the slide here.
There is a saying that its something like this: "Don't look at what they say, look at what they do". And I decided to search on the internet some other news about Goldman Sachs and cryptocurrencies, to see if they have really different intentions regarding cryptocurrencies or they definitely don't like them.
I found an article on their own website goldmansachs.com wrote by Allison Nathan (Senior Strategist, Global Investment Research). She basically says the following:
We are optimistic that blockchain, the distributed technology that underpins digital currencies, could have a meaningful and important impact across industries. But as the debate over crypto pricing itself continues, we would take a fairly cautious view.
I also found an old article by The New York Times tittled Goldman Sachs to Open a Bitcoin Trading Operation. And I found other articles stating that Goldman Sachs, JP Morgan and other institutions are planning to launch their own cryptocurrencies or at least they are studying it.
In conclusion, I don't believe them at all. They say one thing and plan another, they have to say that they are against Bitcoin as it is a real attack to their power.
It will be hard but we'll win this battle.
Enjoy! π