Goldman Sachs Gives Up On Bitcoin
Goldman Sachs analysts became divided over whether Bitcoin is a safe asset to invest in. They debate if it can be held for a long time to make a profit. Or at least provide some financial security for the owners.
Wall Street investment bank Goldman Sachs has reversed its stance on Bitcoin as it struggles to define asset investment status.
Again, the investment bank made negative comments in its approach to cryptocurrencies. The report became published earlier this week. It claimed that cryptocurrencies are not a sustainable investment.
A report titled “Digital Assets: Beauty is not in the eye of the beholder” concludes that Bitcoin is not a long-term store of value or a class of assets in which it can be invested.
Is Bitcoin Digital Gold?
This is in contrast to their May 21 report called “Crypto: A New Asset Class?” this is positive about the idea, and even Matthew McDermott, global director of digital assets at Goldman Sachs, said: Bitcoin became a viable asset to invest in. Moreover, the bank’s investment strategy group said it wanted to be secure in terms of cryptocurrency. We have refrained from repeating the positive and negative sides surrounding this ecosystem, the report said. The report says that Bitcoin is not “digital gold.”
But in any case, gold in itself is not currently a reliable store of value. It is not itself a consistent or reliable storehouse of value. The report suggests that the blockchain themselves are unreliable. Thus, it concluded that cryptocurrencies and blockchain technology have shaky foundations of trust that increase fear and mistrust.
The final statement is after analyzing different valuation methodologies and applying our multifactor strategic asset allocation model, we concluded that cryptocurrencies are not a sustainable investment for our clients’ diverse portfolios. Such a statement can lower the price of bitcoin very easily. Particularly, because the crypto market has been very vulnerable in the last month.
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