A greater number of the crypto community members expressed their disagreement with the recent statement made by the American multinational investment bank and financial services company, Goldman Sachs Group.
In a statement made during Goldman Chief, David Solomon’s interview with Bloomberg. David revealed his company’s plan to launch its new cash management operations in the UK by September and the rest of Europe by the year.
While presenting, Goldman lectured about cash management and holding deposits as the biggest part of banking operations. The firm stated that any security that derives appreciation from someone’s willingness to pay a high price isn’t the best investment for its clients.
Goldman Sachs went further to say that though hedge funds are attracted to cryptocurrency based on high volatility, such a draw doesn’t translate crypto into a good investment tool, because it is full of uncertainty.
Goldman Sachs’ statement caused a lot of reactions among the crypto community on Twitter, one twitter user called Goldman Sachs’s theory “a propaganda statement.”
Another opined that cryptocurrencies like bitcoin have more potential for certainty than most financial institutions.
Why is Bitcoin Not an Investable Asset?
Among other reasons given by the banking service company to disqualify bitcoin and other cryptos are;
- Bitcoin is an uncertainty hedge, not an inflation hedge
- Not an asset class
- High volatility level
- Holding bitcoin is cash saving, not cashflow investing
This largest cash management company in the world proposes to employ new technology to cover up for its lack of customer base in the European region. The bank believes it can win more clients using its user-friendly technology than any other method.
It has been gaining support from some US corporate bodies and is equipped to 200 basis points more than its rivals.