Slides from a Goldman Sachs presentation held on May 27 make it clear that the investment bank does not think highly of Bitcoin (BTC) and cryptocurrencies, even saying that the latter was not an asset class.
The cryptocurrency world was buzzing with speculation as to what the multinational bank might have to say on Bitcoin, but it spent only a few minutes on the asset in a session titled “US Economic Outlook & Implications of Current Policies for Inflation, Gold and Bitcoin.”
The slides from the presentation show a list of reasons for why Goldman Sachs don’t think Bitcoin is a legitimate asset - arguments which have already been rebutted by proponents of cryptocurrency. Even Bloomberg analysts have said that Bitcoin is experiencing a leap in maturation.
A slide from the presentation that criticizes Bitcoin's ability as an asset.
For example, one stated reason is the volatility, which undoubtedly exists in the market, but the presenters point to the crash of March 12, 2020 i.e. “Black Thursday”, conveniently forgetting to mention that all markets crashed around that date. Furthermore, it also states a point that applies to the equities market,
We believe that a security whose appreciation is primarily dependent on whether someone else is willing to pay a higher price for it is not a suitable investment for our clients.
It also makes the tired argument of cryptocurrencies being a conduit for illicit activity -when cash remains king in this regard, and Goldman Sachs itself being fined for various offences since 2000.
Prominent individuals in the crypto space weighed in on the discussion, like the Winklevoss twins.
The hypocrisy of Goldman’s positions have seen much derision from members of the cryptocurrency community, who note that Goldman Sachs at one point was working on its own Bitcoin trading operation.