Goldman Sachs analysts divided over whether Bitcoin is an ‘investable asset class’
Goldman has flip-flopped once more declaring crypto assets as undeserving investment within the same week it expands its crypto commerce table.
Wall Street investment bank syndicalist Sachs has created another reverse on its stance toward Bitcoin because it struggles to outline the asset’s investment standing.
The investment bank flip-flopped once more in its approach to cryptocurrencies with a report issued earlier on that claims they’re not a “viable investment”.
The report, titled “Digital Assets: Beauty isn’t within the Eye of the Beholder”, complete Bitcoin isn’t “a long store valuable or associate degree investable asset class”.
This contradicts their could twenty one report titled “Crypto: a brand new plus Class?” that was for the most part positive concerning the concept and even featured Matthew McDermot, world head of digital assets at syndicalist Sachs, saying:
“Bitcoin is now considered an investable asset”.
That successively, was a repudiation of another Emma Goldman Sachs presentation last year wherever completely different analysts from the bank provided 5 reasons that Bitcoin wasn’t an plus category appropriate for investment.
In the new report, the bank’s Investment Strategy cluster declared it wished to play it safe with regards to cryptocurrency. “We have evaded repetition the positive and negative promotion that surrounds this scheme as a result of we tend to don’t wish purchasers to be seesawed, even swayed by a cacophony of assertions, several of them uncorroborated,” the report said.
It went on to state that Bitcoin wasn’t “digital gold” in any case, gold itself wasn’t a reliable store of value:
“The argument that Bitcoin and cryptocurrencies are a digital version of gold does not confer any value to Bitcoin and other cryptocurrencies, because gold itself is not a consistent or reliable store of value,”
The report also suggested that blockchains themselves are untrustworthy, concluding that cryptocurrencies and blockchain technology are “built on layers of trust that could be eroded.”
“After analyzing various valuation methodologies and applying our multi-factor strategic asset allocation model, we have concluded that cryptocurrencies are not a viable investment for our clients’ diversified portfolios.”
Clearly there are divisions in the bank about its approach to cryptocurrency. In May, Goldman Sachs led a $15 million investment round for blockchain analytics firm Coin Metrics.
On Monday, June 14, it was reported that McDermott confirmed that the investment bank was expanding its crypto trading desk to include Ethereum options and futures.