The banking giant Goldman Sachs conducted a study on Bitcoin (BTC), with unconvincing results. According to some sources, the bank provides confusing information to potential BTC investors, while its position is not conclusive either.
"Cryptocurrencies, including Bitcoin, are not considered a class of assets" and "we do not recommend bitcoin for clients 'investment portfolios, even if its volatility may provide various opportunities for traders" Goldman Sachs' consumer and investment division wrote recently.
The bank also accentuated the volatility of the instrument, the lack of correlation with other instruments, the possibility of its use in illicit activities. Moreover, there were mentioned various examples of hacking and questioned the rarity of Bitcoin and its ability to cover inflation.
The bank agreed that "this is an instrument whose recognition depends primarily on someone's willingness to offer a higher price and is not a suitable investment for its customers." In addition, the financial institution is skeptical about gold, saying it does not recommend it for its investors' portfolios.
Cryptoverse
Instead, Cryptoverse criticized Goldman Sacks for its poor research work, pointing out that it made many mistakes and misinformed investors. This aspect should not be neglected, being a serious company. The director of Abra (mobile wallet application for cryptocurrencies), Bill Barhydt, listed some key issues related to the study conducted by the bank:
they do not understand or do not want to recognize what a deflationary instrument is
they do not even recognize the true nature of Bitcoin's rarity and the strength of its network
they also don't understand the hard fork
In addition to the mistakes in the report, some voices recalled an alleged dark past of Goldman Sachs on money laundering and the connection to the money-printing machine, the Federal Reserve. Many people believe that the big banks on Wall Street are not adapting fast enough to today's technology. But others believe that as Goldman Sachs starts selling BTC, it will radically change its mind.
My successful faucets!
PipeFlare & Hive ZCash - ZEC with tier 4 referral program
FreeCryptos: (DASH), (TRX), (ETH), (Cardano), (BNB), (LINK), (NEO) & (BTC)
Bitcoin is slowly getting close to the real value