The investment Bank held a conference at which he listed the many disadvantages of the cryptocurrency. Among them-high volatility of the exchange rate, lack of features of a protective asset, use in illegal activities, and so on

Bitcoin and cryptocurrencies in General do not belong to the asset class, said one of the world's largest investment banks, Goldman Sachs. Today, on may 27, the company organized a conference for clients on the current state of the economy, gold and problems with inflation. Among other things, the issue of digital money. Materials from this meeting were published by Mike Dudas, the founder of the Block information portal, on his Twitter account.

Goldman Sachs in its presentation listed a number of reasons why the cryptocurrency can not be classified as an asset class. The arguments are as follows:

Does not generate cash flows like securities;
Does not participate in GDP growth;
It does not allow to diversify investments due to unstable correlations;
There is no downward trend in volatility;
There is no evidence that it can act as a hedge asset against inflation.
A separate point in confirmation of high volatility in the company indicated a daily drop in the bitcoin exchange rate by 37%, which occurred on March 12. In addition, Goldman Sachs analysts noted that cryptocurrencies can be used for conducting illegal activities. For example, they can be involved in the organization of financial pyramids, money laundering, extortion, and be used as a payment unit in the darknet.

The company stressed that, although the issue of cryptocurrencies is limited, the number of digital assets themselves is not. Three of the six leading coins by capitalization are "identical clones" of each other. This means Bitcoin, as well as Bitcoin Cash and Bitcoin SV, analysts explained.

They added that the crypto industry is still developing, which means that companies working with digital money are at risk of being attacked by hackers. Many users entrust their funds for storage to exchanges, which makes them a target for cybercriminals. As an example, representatives of the company cited all the hacks of major trading platforms over the past nine years. A total of 44 such incidents are indicated.

In April, Bloomberg analysts expressed the opposite opinion. They stated that bitcoin is turning from a speculative crypto asset to a digital version of gold. Reasons: increased interest in cryptocurrency futures and reduced volatility.