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"Bitcoin is not an independent asset class"



According a tweet Posted by Digital Currency Group CEO Barry Silbert, who participated in a recent call from a Goldman Sach client, one of the largest American banks does not recognize Bitcoin as an independent asset class. This also applies to other cryptocurrencies.

In one of the slidesGoldman Sachs explains that cryptocurrencies cannot generate positive cash flow like bonds, does not dampen volatility, and does not provide diversification.

Bank analysts are also convinced that Bitcoin cannot protect its investors against inflation (contrary to what its proponents believe).

The scheduling of the Bitcoin-related conference call by the New York-based bank was perceived as a sign that it was changing its tone towards Bitcoin.

After all, the call was announced just weeks after Paul Tudor Jones, one of the world's most famous investors, assigned nearly two percent of his portfolio to Bitcoin to guard against the weakening of the cash he sees as a ‘wasted asset’.

However, Goldman Sachs destroyed this optimism by presenting Bitcoin in a negative light to its clients.

In addition to denying that Bitcoin is an independent asset class, Goldman Sachs also drew attention to its illicit use cases, like Ponzi schemes, ransomware, money laundering and darkweb markets.

Slow but safe

Despite pouring cold water on cryptocurrencies on the customer call, Goldman Sachs attempted to return to cryptocurrencies in the past.

In particular, the bank has inpouring money at major cryptocurrency firms like Circle and BitGo.

The bank was also rumored to have launched its own Bitcoin trading table in 2018, but the Goldman Sachs CEO David Solomon refuted numerous news reports.

Meanwhile, JPMorgan Chase, the number one bank in the United States whose CEO Jamie Dimon called Bitcoin ‘a fraud’ in 2017, recently added Coinbase and Gemini as its first cryptocurrency related customers.


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