Is Goldman Sachs Going To Invest In Crypto Businesses?
We used to hear negative things about crypto from big guys who hold the bigger pie in the traditional financial system. Since they are in the top position in the existing financial system, many people follow them. Is the multinational investment bank Goldman Sachs going to invest in crypto businesses?
It is hard to believe when you see big guys change their stance. Once they suggest avoiding crypto because it is going to burst soon, later, they suggest investing a small portion of the portfolio in crypto, and finally, they think it seriously to go big in crypto businesses.
According to Matthew McDermott, Goldman’s head of digital assets, if the regulated trustworthy players get involved in crypto, it can improve the current situation in the crypto industry. After the shocking collapse of FTX, it spreads FUD in the crypto industry.
People who made an investment in crypto for the first time cannot take this blow easily and may not be back in crypto any time soon. If you talk about big players with institutional money, they feel comfortable investing in crypto having regulatory protection.
Due to the recent collapse of FTX, many businesses in crypto affects directly and indirectly. At the beginning of the collapse, they try to act as if nothing happens and everything is fine. But later, it appears they are in big trouble and have exposure to FTX in one way or another.
Goldman Sachs intends to get involved in crypto businesses. It can be good if you think that institutional money will flow in the crypto industry and the crypto market color might turn green from red. But the thing is, those big trustworthy regulated players are not fans of decentralization.
We may see more centralization in crypto projects that itself is very risky. Things like FTX can happen again and it would look pretty bad. You spend so much time working and then find some crypto projects to invest in. It looks good and those projects are backed by so-called trustworthy big players.
Due to some stupid actions by big players, everything can collapse and you can lose your money. The problem is, when it becomes more centralized, the end story is pretty bad.
No matter how good something seems to be in crypto, centralization can destroy the entire empire faster than you can imagine in the wildest nightmare. Let's see how things pay around. Here I'm sharing my opinion, but you can have a different opinion and I respect that.
So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
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I think this is right decision he made.