Goldman & Sachs: Bitcoin: Currency or Asset Class?

[btc_angela]

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"



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

I'm sure a lot of eyebrows have been raised here, Twitter will explode and will criticised Goldman & Sachs statement here.

What are your thoughts?

[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.

[Kemarit]

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

Cash flow? I think Holders will disagree with that, as Bitcoin is 'cash saving" for majority of us.

Hedging inflation? Again, majority of us do believed that it can be it can be an instrument against uncertainty, just like we have seen during this pandemic.

And it seems that they just cherry pick their argument to fit their obvious narrative.

Quote from Tyler Winklevoss:

Goldman Sachs: We do not recommend bitcoin on a strategic or tactical basis for clients’ investment portfolios...

Google Translate: We don't want our clients to buy bitcoin and realize they don't need us anymore.

https://twitter.com/tylerwinklevoss/status/1265701227477839873

[Darker45]

Well, they are bound to think within their traditional mindset. As a consequence, they end up trying to describe and assess Bitcoin within their own terms. And as expected, Bitcoin would fail. But whatever. What do you expect from no less than Goldman & Sachs?

[avikz]

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.

Lovely statement! It is so complete that I can't even add anything else!

Probably that's the reason Goldman & Sachs is trying to prove to their clients. If I am not mistaken, the subject of their client conference was "Implications of Current Policies for Inflation, Gold and Bitcoin" and they have tried to decide whether bitcoin is an asset class or not! Anyway, I am happy that big financial corporates like Goldman & Sachs are showing their respect towards bitcoin by looking at it as a competitor!

[davis196]

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.

This Goldman Sachs analysis is the typical "cryptocurrencies are too volatile and risky,don't buy them" type of FUD that has been around for years.

 

[Bttzed03]

~
This Goldman Sachs analysis is the typical "cryptocurrencies are too volatile and risky,don't buy them" type of FUD that has been around for years.

Exactly my thoughts.

Other issues against Bitcoin & other cryptocurrencies tackled in the report were:

• Used for illegal activities such as money laundering, ponzi schemes, darknet, ransomware, etc.
• Young market and susceptible to hacking

^ No matter how many times we debunk all those claims, the same old issue will be brought up/recycled in the years to come by the same group.


The report dismissed Bitcoin not an asset class but they don't have an opinion whether it's a currency or not? They described characteristics of a currency but that's it. Are they leaving it to the readers to determine whether bitcoin/crypto is used as a medium of exchange, serve as unit of account, and  a store of value?

[NeuroticFish]

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

Bitcoin is a competition to banks. It allows people do the same things like some of the banks' products, but with lower fees.
Of course, since instead of making them money, Bitcoin makes them lose money, they will advise as much as possible against it.
Maybe they should think of hiring a PR company that's free of dinosaurs, else they too will become extinct in a not so far future.

[TravelMug]

What are your thoughts?

 If I recall correctly not long ago their experts have called on investing to bitcoin. No  body  knows what changed in their head  since then but one can  assume they manipulate the media for their selfish ends. They are part of the big game changing their view in accordance with the  greed, so to say "the best fish keeps near the bottom" while Goldman & Sachs near the fat.

2018 - Goldman Sachs to Open a Bitcoin Trading Operation

2020 - "Cryptocurrencies Including Bitcoin Are Not an Asset Class"

Perhaps they are really 'threaten' and see bitcoin as competition today. And there are reports that people are putting the stimulus package on bitcoin and I think that is the big issue for them.

Anyhow, it's there call and I'm sure majority are going to trash them out for making a U-turn.

[Finestream]

I would rather believe in what I think that follow these banking who think they are God and they know everything.
They could not be telling the truth or they could be bias as they have their interest being protected.

Goldman & Sachs should tell these to people who have made a fortune in bitcoin and now are living a life financially free.

Our evaluation is what really matters at all, just like when investing in crypto, we did our own research and we make a decision on what we believe, not because they are big and popular or they are a traditional business, they will be right all the time, it's about time that we prove them wrong.

[ReiMomo]

It will always be difficult for people to leave whatever they get used to and adopt new things because of FUD.

I am not expecting that in this Goldman & Sachs meeting will bring a positive effect to bitcoin world however it is nice to know that they already recognize the crypto world and they are afraid of what's in it to them. Anyway, no winners could win right away winners really need to go through hardships and failures as well but in the end when bitcoin is already ripe then every bitcoin holders will ripe all their hardships and be the winner in the end.

[webtricks]

We believe that a security whose appreciation is primarily dependent on whether someone else is willing to pay a higher price for it is not a suitable investment for our clients.

What Goldman Sachs trying to be here, an investment noob? Ain't the appreciation of every asset is dependent upon a buyer who is willing to pay higher amount to buy it from the current holder? And as far as word 'primarily' is concerned, I doubt that the people arbitrarily paying such huge price for every unit of Bitcoin. The price of Bitcoin rose hugely over years due to the underlying technology. Why not the other cryptocurrencies are as expensive as Bitcoin? Simple because their blockchain is not as invincible as Bitcoin's. The time, efforts and cost needed to hack the Bitcoin network should be considered while doing Bitcoin's valuation. Aren't we counting that here, Goldy? Bitcoin is much more than a speculative investment.

[cryptorush77]

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

Cash flow? I think Holders will disagree with that, as Bitcoin is 'cash saving" for majority of us.

Hedging inflation? Again, majority of us do believed that it can be it can be an instrument against uncertainty, just like we have seen during this pandemic.

And it seems that they just cherry pick their argument to fit their obvious narrative.

Quote from Tyler Winklevoss:

Goldman Sachs: We do not recommend bitcoin on a strategic or tactical basis for clients’ investment portfolios...

Google Translate: We don't want our clients to buy bitcoin and realize they don't need us anymore.

https://twitter.com/tylerwinklevoss/status/1265701227477839873

https://www.facebook.com/Finance1news1/

[Juggy777]

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"



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

I'm sure a lot of eyebrows have been raised here, Twitter will explode and will criticised Goldman & Sachs statement here.

What are your thoughts?

@btc_angela basically Goldman Sachs just gave a Jamie Dimom type statement where they’ll first bash bitcoins, and then in coming years they’ll go on to praise bitcoin and then ask their client’s to invest in it. Furthermore Winklevoss brothers have roasted Goldman Sachs on twitter, and have openly called out their blunder as Bitcoin is a commodity, and now I’m waiting to see if Goldman Sachs will apologise or no for their statement.

Cameron Winklevoss Tweet:

Hey Goldman Sachs, 2014 just called and asked for their talking points back.

Bitcoin was declared a commodity by the CFTC in 2015 in the Coinflip order...so yea it's an asset whose price is set by supply and demand. Just like gold. Just like oil. It's a commodity.

Tyler Winklevoss Tweet:

The more I think about it, the Goldman report is probably a head fake. Seems like something the vampire squid would do. They’re probably rebranding to ‘Goldman Stacking Sats’ as we speak.

Source:

https://www.cnbc.com/2020/05/28/goldman-sachs-vs-bitcoin-cryptocurrency-fans-lay-into-bank.html

[salamat700]

As what I expected, Goldman & Sachs will not easily give up their standard notion on Bitcoin and cryptocurrency. However, I am sure that deep inside these people they are already feeling the wind of change. For now, they think they can still hold on to their traditional beliefs and convictions but time is coming when they will have no choice but to join the party otherwise miss to made some nice profits dealing with Bitcoin. The fact that they include this big topic means something: there is a very clear demand on their client base.

[Baofeng]

It is obvious that when banks as big as Goldman and Sachs doesn't make profit out of bitcoin, they then will see it as nothing. This is how they work, they are going to try to reject it by all means. Perhaps they have a lot of customers asking about bitcoin and this irritates them, that's why they came up with this so called presentation to quash them. Well it's their lost if some of their customers move out specially those who wanted to invest on bitcoin. And you can sense some fear (as a bank), so this is good for crypto.

[Natalim]

Banks are against crypto because bitcoin can do banking without bank, and it's against their interest so they would not appreciate it, instead they will destroy it as they want to keep their centralized system and continue making profit on it.

Lots of rich people are against bitcoin especially are those who are in banking business, even Warren Buffett does not believe in bitcoin called it "gambling device".

Warren Buffett says bitcoin is a ‘gambling device’ with ‘a lot of frauds connected with it’

[Zheastabed]

Even if Goldman Sachs put Bitcoin on the line with Gold it means we are witnessing a paradigm shift right now! Bitcoin is an asset class now but soon it will obtain a new use case - currency.
https://newsblockchain.io/news/btc-and-gold-compete-as-a-store-of-value-after-halving

[Yogee]

It is obvious that when banks as big as Goldman and Sachs doesn't make profit out of bitcoin, they then will see it as nothing. This is how they work, they are going to try to reject it by all means. Perhaps they have a lot of customers asking about bitcoin and this irritates them, that's why they came up with this so called presentation to quash them. Well it's their lost if some of their customers move out specially those who wanted to invest on bitcoin. And you can sense some fear (as a bank), so this is good for crypto.

Goldman & Sachs bitcoin playbook:

Step 1: Attack bitcoin to dissuade our clients from investing - Ongoing
Step 2: Convince our clients to invest in our digitize assets - Pending

https://www.cnbc.com/2019/06/28/david-solomon-says-goldman-sachs-is-researching-creating-a-digital-currency.html
https://bravenewcoin.com/insights/goldman-sachs-will-tokenize-the-world

[batang_bitcoin]

I guess Goldman Sachs is playing like Jamie Dimon's JP Morgan Chase. They are giving the people the idea that they don't like bitcoin and stops them to invest in bitcoin. But, there is a tendency that they are already in it and is silently accumulating.

Quote from Tyler Winklevoss:

Goldman Sachs: We do not recommend bitcoin on a strategic or tactical basis for clients’ investment portfolios...

Google Translate: We don't want our clients to buy bitcoin and realize they don't need us anymore.

https://twitter.com/tylerwinklevoss/status/1265701227477839873

Good one Tyler, I'll wait if GS will reply on his tweet.