Previously it was reported that Goldman Sachs held a conference call on Wednesday to talk about US policies and their implementation in the time of COVID-19 pandemic. During the call, Goldman Sachs also talked about gold and Bitcoin. Apparently, Goldman Sachs is still pessimistic about Bitcoin.
Goldman Sachs representatives talked about how Bitcoin and similar cryptocurrencies can’t still be considered as an asset class despite the fact that they have received bigger attention and interest than before. The discussion about Bitcoin only took more or less 5 minutes.
Goldman Sachs argued that Bitcoin does not have any underlying cash flow, and it’s too volatile for institutional investors. It specifically hinted to early March’s BTC bearish price action where (at the time) the price dipped to below $5,000. The fact that BTC price has returned to over $9,000 within just two months still does not impress Goldman Sachs. It’s actually the other way around. They think the recent price growth only proved their point about how Bitcoin is simply too volatile.
At the end of the day, Bitcoin is simply not recommended by Goldman Sachs to its investors. And of course, this news was not welcomed by crypto figures and believers. They think Goldman Sachs is simply too naive and hypocritical. They argued that some assets that Goldman Sachs deemed as “suitable for clients” also do not have any cash flows. So, the argument about Bitcoin is not good enough for its lack of cash flow is seen as a double standard policy.
Source: Coindesk
