A new report by Goldman Sachs shows the company is somewhat schizophrenic when it comes to cryptocurrency – and it’s not making the firm a lot of friends among independent traders who feel like crypto has potential.
Today Martin Young reports at Coindesk about a report called “Digital Assets: Beauty is Not in the Eye of the Beholder” that reportedly suggests crypto is “not a viable investment” and that Bitcoin is “not a store of value or an investable asset class.”
Young and other critics point out that on May 21, Goldman analyst Matthew McDermott basically said that Bitcoin is an investable asset class.
Also, Goldman analysts who feel that it’s not should tell that to the companies that have now acquired massive stakes in Bitcoin as capital reserves, including Microstrategy and Elon Musk’s Tesla company.
There is a tell in the new Goldman report showing just how deep a hole some of these analysts are digging for themselves in suggesting that gold itself is not reliable either. Here’s how Young reports this throughline, quoting Goldman heads:
“In the new report,” Young writes, “the bank’s Investment Strategy Group stated it wanted to play it safe with regards to cryptocurrency. ‘We have refrained from repeating the positive and negative hype that surrounds this ecosystem because we do not want clients to be seesawed, even swayed by a cacophony of assertions, many of them unsubstantiated,’ the report said. It went on to state that Bitcoin was not ‘digital gold’ — but in any case, gold itself was not a reliable store of value.”
As Goldman now takes aim at Bitcoin, some more independent voices are firing back.
“Hey Goldman Sachs, 2014 just called and asked for their talking points back,” Cameron Winklevoss, who made himself enormous wealth with BTC, said in a tweet. “The more I think about it, the Goldman report is probably a head fake,” writes his brother Tyler, also of BTC wealth and fame.
“Goldman Sachs served a cold dish to the crypto community, which was largely expecting them to come out with a bullish call on the world’s number one digital asset,” responded famed crypto analyst Mati Greenspan. “Perhaps Goldman is just trying to jawbone Bitcoin to buy more for themselves at a cheaper price. Who knows?”
So, investors – take anything that the “vampire squid” says with a grain of salt.
