According to Goldman Sachs in a presentation Wednesday morning, it gave five reasons why he thinks bitcoin is "not an asset class" nor "a suitable investment"
Goldman Sachs, led by Jason Furman and Jan Hatzius, said in a presentation on Wednesday that bitcoin "is not an asset class," nor is it "a suitable investment."
The bank gave five reasons why investors should shy away from the cryptocurrency:
1. Bitcoin does not generate cash flow like bonds.
2. Bitcoin does not generate any earnings through exposure to global economic growth.
3. Bitcoin does not provide consistent diversification benefits given its unstable correlations.
4. Bitcoin does not dampen volatility given historical volatility of 76%. Goldman points to March 12 when bitcoin fell 37% in a single day as evidence that bitcoin's volatility is through the roof.
5. Bitcoin does not show evidence of hedging against inflation.
So basically, as in investor try not to make Bitcoin your only investment. In my next article I will talk about Bitcoin's struggle with the $10,000 resistance level.
Is that so... would like to know more