Goldman & Sachs: Bitcoin: Currency or Asset Class?

[hatshepsut93]

And in their conclusion, they said that bitcoin is not viable as investments.

They didn't say that it's not a viable investment, they said they don't recommend it to their clients who are looking to hedge themselves against the impact of covid-19 on the economy. They admitted that Bitcoin is a viable option for speculators. I don't see what's wrong with this statement, everyone knows that Bitcoin is so volatile that any fundamental behavior related to fiat economy is barely noticeable in short term.

[DoubleEdgeEX]

I just read on Linkedin that the statement truly was written by an intern. After reading their announcement in the morning today, I was already thinking what kind of drunken imbecile would come up with that stuff. I hope someone can confirm that it was in intern so we can expose of how GS treat their customers with their knownledge sharing/opinion building schemes

[arcmetal]

Goldman & Sachs recently held a conference call and discusses the bitcoin and gold in the backdrop of Covid-19 pandemic.

And attached below are the slide materials:

https://resources.goldman.com/content/dam/pwm/direct-links/isg-calls/client_call_materials_27May20.pdf?sa=n&rd=n

And according to them, (no surprise) , "Cryptocurrencies Including Bitcoin Are Not an Asset Class"

...

What they really mean:

• We can't manipulate it.
• We can't control it.
• We can't generate it.
• We can't mess with it in any easy way.
• Therefore, we think it's pointless, ignore it.

-Goldman Sachs CAN manipulate cryptocurrencies,if they want to.They are currently manipulating all the markets they want-stocks,bonds,fiat currencies,etc.If they can manipulate something,they can control it
-Goldman can buy some mining equipment and build crypto mining farms somewhere around the world to mine cryptocurrencies,so they can hypothetically generate cryptocurrencies.

Your points might sound cool for the average crypto enthusiast,but they are far away from the truth.

...

Oh really.  Far from the truth you say.  So name one way in which GS can "manipulate" bitcoin.  Just one.

My response would be, let them try.  It would make me chuckle. (that is, any attempt to manipulate it will raise the price and fill me with glee)

Do not forget:  one must have bitcoin to dump bitcoin.  --- let that sink in a bit, and then try and come up with an easy way to manipulate bitcoin.

[batang_bitcoin]

I just read on Linkedin that the statement truly was written by an intern. After reading their announcement in the morning today, I was already thinking what kind of drunken imbecile would come up with that stuff. I hope someone can confirm that it was in intern so we can expose of how GS treat their customers with their knownledge sharing/opinion building schemes

An intern? no, it's likely an official statement from them. Can you give the link from LinkedIn where you have read that reason? Articles published everywhere already said that it's them that betrayed bitcoin.

1. Goldman Sachs betrays bitcoin
2. Goldman Sachs Slams Bitcoin And Gold On Investor Call, Crypto Community Reacts

[BrewMaster]

they are trying so hard to deny the fact that bitcoin is growing and buy themselves more time. for now they will continue denying and rejecting bitcoin but soon they will make a 180 degree change and embrace it or maybe even create a shitcoin themselves and eventually be crushed and lose a lot of money exactly because of what they will have done.

Is this the reason why Bitcoin has been pump in the last 24 hours? 

i think you don't know what the word "pump" means
even in huge markets that only move a couple of percentages you can't consider the rise bitcoin recently had as a "pump". not to mention that even 30% rise is not surprising in bitcoin...

[gentlemand]

Strange that they never, ever seem to acknowledge that it does have qualities and usefulness that nothing else has and those same qualities will eventually contribute much more to its value than they are at the moment. Why does that conclusion never surface?

You can call the present market a shitshow and you'd largely be right but it seems very dim not to add that this is one phase on a totally uncharted journey and there's no way of knowing where it's going to end up. Some promising clues have been dropped all the same.

[dothebeats]

It's obvious that they are trying so hard to dismiss bitcoin's own merits in the field of fintech and investments. JP Morgan and Chase already did the same with the help of the mouth of Jamie Dimon, and it turns out that they themselves are secretly buying bitcoin. There's the slightest possibility that Goldman & Sachs is doing the same thing, although that may also be very unlikely considering how deep this firm is connected with some of the governments own 'business' dealings.

Anyway, G&S might be brewing their own digitized assets hence the recent attacks, but still, there's something off with the recent statement that it's really hard to tell whether they're sincere or not.

[Chris!]

Looks like this has already been corrected.

[Kemarit]

Is this the reason why Bitcoin has been pump in the last 24 hours? 

i think you don't know what the word "pump" means
even in huge markets that only move a couple of percentages you can't consider the rise bitcoin recently had as a "pump". not to mention that even 30% rise is not surprising in bitcoin...

I think you didn't get my sarcasm there. 

[hatshepsut93]

Definition of Asset Class from Investopedia:

An asset class is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset classes are made up of instruments which often behave similarly to one another in the marketplace. Historically, the three main asset classes have been equities (stocks), fixed income (bonds), and cash equivalent or money market instruments. Currently, most investment professionals include real estate, commodities, futures, other financial derivatives, and even cryptocurrencies to the asset class mix.

Goldman Sachs might personally not like Bitcoin, they might be right that Bitcoin doesn't have all those properties that they like to see in investments, but there's absolutely no reason to say that it's not an asset class. Currency is an asset class too, anything is an asset class if it can be consistently used for investments.

[Reid]

We have to say our thanks to Goldman Sachs for giving us a free advertisement with the mass. 

Sure it ain't nothing as they expected it.
Why bring it up now?
Are they losing money because the people are engaging in a different view of investing?

Also to conclude it for them.
Yes, it is not an investment, it is a currency. 

[bitbunnny]

And in their conclusion, they said that bitcoin is not viable as investments.

They didn't say that it's not a viable investment, they said they don't recommend it to their clients who are looking to hedge themselves against the impact of covid-19 on the economy. They admitted that Bitcoin is a viable option for speculators. I don't see what's wrong with this statement, everyone knows that Bitcoin is so volatile that any fundamental behavior related to fiat economy is barely noticeable in short term.

They gave the advice tp their ckients and they obviously don't think that investinf in Bitcoin is vwry wise because of high risk and volatility. This might be the overall conclusion and yes, there is nothing wrong in that.
We are all aware, or at least we should be, the risk we take when investing in Bitcoin but for some reason we still don't like when this is said on the way that Goldman&Sachs put it.

[pawanjain]

Goldman & Sachs recently held a conference call and discusses the bitcoin and gold in the backdrop of Covid-19 pandemic.

And attached below are the slide materials:

https://resources.goldman.com/content/dam/pwm/direct-links/isg-calls/client_call_materials_27May20.pdf?sa=n&rd=n

And according to them, (no surprise) , "Cryptocurrencies Including Bitcoin Are Not an Asset Class"

...

What they really mean:

• We can't manipulate it.
• We can't control it.
• We can't generate it.
• We can't mess with it in any easy way.
• Therefore, we think it's pointless, ignore it.

But that's not true right.

The whales do manipulate it.
The possibility to control it occurs if you have more than 51% mining power.

Anyway, I got your point and what you are trying to say. Indeed Goldman and Sachs are behind what they can manipulate and not behind something which is actually worthy enough to change the entire future generation.

[fiulpro]

Any volatile currency is not something that would be considered an asset for sure , but with added assurance of price being up in a couple of years do makes a good point in holding them up for a long term.

Undoubtedly no one is asking you to risk your savings here , you can instead try short term trading or even short term investments here if you are unsure of the outcome.

Gold is something that does have a reputation plus it's place as an asset is undoubtedly stable , but at the same time it is highly regulated , you cannot even sell beyond a certain amount until and unless you are ready to show the receipt , plus if you buy online gold most sites have an assigned time period when you can sell those off .

Bitcoins on the other hand actually gives you real freedom. I do think sooner or later people will realize the importance of financial freedom. We might have a lot of money but at the same time the government's tracking , rules , restrictions , corruption does not make it seem like the money is actually ours. The value is dependent on the authorities and the Fiat is infact volatile too but highly controlled .

People need financial freedom, Bitcoins is something that is more like a Beta test about what they will do with it . Rather than disputing it as an asset , we should try and search about it's implications. If used correctly it does hold more value than any Gold and Fiat.

[buwaytress]

They didn't say that it's not a viable investment, they said they don't recommend it to their clients who are looking to hedge themselves against the impact of covid-19 on the economy. They admitted that Bitcoin is a viable option for speculators. I don't see what's wrong with this statement, everyone knows that Bitcoin is so volatile that any fundamental behavior related to fiat economy is barely noticeable in short term.

Exactly. I think people are reading a bit too much into an investment call. I love Bitcoin but I wouldn't recommend it at all if I were an investment advisor! I mean, sure, if you want to hedge a little bit, then maybe a tiny addition into a "high-risk" portfolio.

I think Sachs and others at least know insight into other assets but they cannot possibly know enough about Bitcoin to justify advising clients. So it's the right call for them.

[joinfree]

I really don't give much attention to what some of these naysayers say about bitcoin though. They claim is dead and it's not worth investing in it but though nobody can prove it I am pretty sure these same guys have some amount of bitcoins stored with them.

[Ridwan Fauzi]

They aren't aware that bitcoin can't be manipulated easily by anyone or any parties though.

In 2018 ago I still remember that they made a statement to support bitcoin in the order to they can manipulate bitcoin so as their business is safe.

But they can make it happens and try to compete bitcoin and make a bad statement about it. And honestly, the statement can't be able to make bitcoin slumped down and even its price just increased. According to some analyst, bitcoin could reach $12.000 in two months ahead, I can't wait to see that will happen but clearly it will make all competitor bitcoin surrender.

[gentlemand]

They aren't aware that bitcoin can't be manipulated easily by anyone or any parties though.

Unless there's a raging bubble on, which only comes around every few years, the price is easily manipulated by small groups. All it takes is one strong buy or sell to get everyone else to pile in after it.

Bitcoin the system itself is quite possibly beyond evil influence, the price is fair game much of the time. This market is filled with scared, twitchy kiddies ready to run into the muscular arms of anyone more bold than them.