Goldman Sachs Inc., a leading global investment bank, made a controversial comment on crypto investment. “Cryptocurrencies including bitcoin are not an asset class,” Goldman Sachs stated. Crypto fans view this comment as a war declaration that would pose a challenge to the whole crypto market. Experts claim there are a few reasons why virtual currencies cannot be considered an asset class in their own right as they do not generate steady cash flow likes shares, bonds, or other conventional investment instruments. Another argument against digital assets is that they offer investors nothing but a decentralized and secure payment method. However, “that allure does not constitute a viable investment rationale.” Analysts admit that trading cryptocurrencies could appeal to investors because of their high volatility, but this is a cause for alarm to savvy investors. Interestingly, Goldman Sachs used to express radically opposite viewpoints on bitcoin.
Meanwhile, some financial giants targeted the dubious stance of Goldman Sachs on crypto assets. Notably, the crypto community can read between the lines. On the one hand, a thumbs-down discouraged crypto investors. On the other hand, they suspect the financial giant’s secret interest in bitcoin. The Winklevoss twins, co-founders of the cryptocurrency exchange Gemini, came up with a backlash against Goldman Sachs’ advisory comments on bitcoin. “Hey Goldman Sachs, 2014 just called and asked for their talking points back,” Cameron Winklevoss said in a tweet. His brother Tyler added, “The more I think about it, the Goldman report is probably a head fake,” aimed to bewilder crypto investors.
