With the recent price target of $100,000 from Goldman Sachs, one of the most successful and shady investment institutions. One must ask the question, why? Why has one of the most "prestigious" investment firms suddenly come out and agreed with the crypto community that Bitcoin is now a sound investment? Weren't these the two different groups not at war for years over if Bitcoin was viable as a currency and not a scam? First we must look at the timeline of how things have changed, because lets be honest. The world has changed drastically over the course of 13 years since the first mined Bitcoins.
January 3, 2009 was Bitcoin's birthday, which is actually pretty cool because it's the same day as mine(not biased at all)! Anyways we skip ahead a little over a year later and on May 22, 2010 the first ever transaction for Bitcoin happened over two pizzas. You can see what those two pizzas would be worth today if you check out this twitter account they give a daily update, which I find hilarious because they are worth almost have a billion dollars today.
Another decade goes by with some people starting to realize early on what Bitcoin could be or just simply taking on risk because they could by buying GPU's and mining BTC. From many people calling Bitcoin a dark web scam to China in 2017 crashing the newly formed top or as some thought a bubble at the time. Bitcoin has been through bear and bull markets, for instance back in 2017 when it first hit $20,000 there were a ton of Chinese miners that had taken profit. Therefor popping the "bubble" and sending Bitcoin's price plummeting down to hover around $10,000, with another crash happening in 2020 that sent the 10k BTC down to $4500 levels at one point. Now you're probably wondering what the hell this timeline has to do with Goldman Sach's price target prediction? Well after the China sell-off a few years go by a huge wave of retail investors start noticing Bitcoin and start asking their fund managers and advisors they know at investment firms. In fact even the major news outlets were even asking the head of Goldman Sachs if Bitcoin was a viable investment in May 2020 and they responded with, " Bitcoin is not an asset class". Why would Goldman Sachs say your cash backed Bitcoin, with plenty of liquidity is not an asset class? To simplify it, it's because those snakes in the grass Goldman Sachs didn't have any Bitcoin themselves. They had no leverage or power over the asset itself due to Bitcoin being a decentralized product, they had no early foot in the door so they could manipulate the hell out of the price when they would like. Imagine if China's profit taking happened every quarter, actually no Goldman would probably profit take monthly due to mining/electricity costs factored in. Thus screwing over not being able to screw over investors and miners like they do with the stock market.
Okay, okay, you get it already but why is it important that Goldman Sach's now just dropped that PT of $100,000? It's important because it should be a giant red flag to all retail investors and bitcoin mining companies. This price target news means that Goldman has spent a ton of resources and time acquiring enough Bitcoin to the point were it will make them a TON of profit if it hits 100k. People listen to those price targets and will buy Bitcoin now even if it hits new highs at 80k just because they will remember "Goldman Sachs said it'll hit 100k so I'll just buy below and wait till then". Even though people know that they flipped on their view of Bitcoin extremely fast with them now saying "Bitcoin is an investable asset". This method of price targeting has moved stocks up for institutions and lost retail a ton of money. They are going to start selling off then rebuying their position of what retail sold off after them, thus having enough power and Bitcoin to manipulate the price. Therefor turning the crypto market into another stock market, which is not the overall goal of crypto, that goal is to decentralize power from institutions that manipulate and use their power for their own pleasures and selfish reasons. They won't be able to stop the decentralization wave though that crypto has started(I hope) because we, the crypto community realize that there are some insanely helpful and cool projects like DeFi that lead the way to real world integrations. There are so many banking opportunities through crypto that you can't get with tangible banks, like 10% interest on your savings or more. I look forward to any other cool projects you guys have heard of recently, put them in the comments below and watch out for those dirty institutions! Don't let them take grandma's pension money anymore!
Enjoy your weekend! -Kevy Mac
