[2018-01-11] Goldman Sachs Admits Bitcoin is Real Money, Cites Use Cases in ....

[cybersofts]

Goldman Sachs Admits Bitcoin is Real Money, Cites Use Cases in Developing World



White shoe investment bank Goldman Sachs has admitted that Bitcoin and other digital currencies could succeed as real money in developing economies. Goldman strategists wrote in a recent report:

    “In recent decades the U.S. dollar has served its purpose relatively well. [But] in those countries and corners of the financial system where the traditional services of money are inadequately supplied, Bitcoin (and cryptocurrencies more generally) may offer viable alternatives.”

Nonetheless, the investment bank warns against expecting 2017-level returns:

    “Our working assumption is that long-run cryptocurrency returns should be equal to (or slightly below) growth in global real output—a number in the low single digits. Thus, digital currencies should be thought of as low/zero return or hedge-like assets, akin to gold or certain other metals.”


Changing tides

This is a remarkable change of tune from the skepticism with which big banks and “mainstream” investors have generally treated digital currency. JPMorgan Chase CEO Jamie Dimon famously called Bitcoin a fraud last year, while legendary billionaire investor Warren Buffett insists that Bitcoin isn’t money and people should stay away. Likewise, hedge fund magnate Ray Dalio dismisses Bitcoin as a bubble.


Outsized importance

Goldman Sachs holds outsized influence in the world of finance and politics. Both The Independent and Al Jazeera refer to Goldman as the bank that controls the world. The Atlantic is only slightly more subtle, referring to Goldman Sachs’ growing influence in the US government as “The Quiet Coup.”

Likewise, the Huffington Post has written extensively about the “revolving door” between Goldman Sachs and the US government. The publication points out that two Goldman Sachs CEOs - Rubin and Paulson - have served as US Treasury Secretary, and former CEO Jon Corzine became a US senator. Other Goldman alums serve in various positions throughout government and finance.


Source: https://cointelegraph.com/news/goldman-sachs-admits-bitcoin-is-real-money-cites-use-cases-in-developing-world

[richardsNY]

Banks just look at Bitcoin from an economical perspective, and the astronomical growth we have been experiencing tells them how much profit they can make in the long run. Even if they still don't like it, they one way or another will offer their clients a way to benefit from Bitcoin and other crypto assets. It may not be by allowing them to buy crypto directly, but just using financial tools to get that exposure is already enough, especially so because of the fact that they just look for growth. It has become somewhat of a trend for skeptics to turn into bulls, or at least admirers of everything this market has to offer.

[logankb]

This is one use of bitcoin that has the potential to boom but many overlook it due to the fact that (in my opinion) this potential is seen to not be of use to people's of developed countries. if more people came to the realization that investments of crypto into developing countries could change the base system of currency in these countries, they may end up assisting in spreading the PROOF that crypto is reliable and the future

[darkangel11]

The longer we can stay at these new price levels the less people will dare to call it a bubble. It's always like that with every single thing. When it becomes a novelty skeptics are gathering to bash it and dismiss it. Let it sit there for a month or 2 and there will be less and less of them. They'll find new things to bash and will get bored with lack of appreciation. Give it a year or 2 and there will be none left and everyone will be like "$20k Bitcoin? Yea nothing new, it's been around that price for years."

[aso118]

It is really stating the obvious, but it still makes news because most other banks have ganged up and are trying to run down Bitcoin. Although Goldman CEO Lloyd Blankfein is fairly neutral on Bitcoin (he only said Goldman may consider opening a crypto desk in the future), he provides a nice counterweight to critics like Jamie Dimon. I disagree with the statement that cryptos could succeed in developing countries; I see them succeeding everywhere.

[iram1011]

Well among a slew of fuds in the last few days from old unaware multi billionaires and prominent bank heads this is a great news. Hopefully stops the 20% bitcoin price bleed happened in the last 3 days. An advantage of crypto's insane growth has been the involvement of institutions which have been under performing in their own business (yes goldman sachs is under performing with return 36 per cent less than top 4) pushing the cryptocurreny. Same goes for IBM pushing with stellar

[hatshepsut93]

I wouldn't be surprised if it will turn out that Goldman Sachs, JP Morgan and other entities are actively tradings Bitcoin and just making statements like this to manipulate the market. Maybe when the price was lower, they have wanted it to grow slower so they can accumulate more, so they were bashing Bitcoin, but now since Bitcoin skyrocketed, they might want to prevent it from crashing so they can lock-in their profits, so they are making positive comments. I have a hard time believing that they are having a genuine change of heart regarding Bitcoin, but who knows, this might be possible too.