GOLDMAN SACHS: Bitcoin will never come back


  Goldman Sachs Chris Hondros / Getty Images

  • Goldman Sachs' investment strategy group states that bitcoin will continue to decline.
  • He also says that virtual currency does not meet any of the three usable money definitions and only makes up 0.3% of global GDP.
  • Bitcoin decreased by 45% in 2018.
  • Follow bitcoins in real time here.

Despite plans to open a bitcoin trading bank at the start of this year, Goldman Sachs is not yet sold in virtual currency.

In a mid-year economic outlook report, the bank's investment strategy group says the price of bitcoin is likely to fall further by more than 45% in the first seven months of 2018. [19659009] "Our view that cryptocurrencies would not retain value in their current incarnation remains intact and, in fact, has been confirmed much sooner than expected," said team headed by investment chief Sharmin Mossavar-Rahamani.

"We expect further declines in the future in view of our opinion that these cryptocurrencies do not meet any of the three traditional roles of a currency: they are neither a medium of exchange nor a unit of measurement nor a store of value. "

Cryptocurrencies – and in particular the blockchain technology that underlies their distributed nature – have been heralded as an obstacle to the global financial system, in theory allowing more efficient databases, faster transactions and more operations. transparent. For now, at least, Goldman claims that they will have no impact on any other asset class.

"It is important to emphasize that we continue to believe that such declines will not adversely affect the performance of broader financial assets, because cryptocurrencies represent only 0.3% of world GDP as of mid-2018", he says. the report. "In fact, we believe that they collect many more traditional media and the attention of social media than is guaranteed."

In May, Goldman publicized his plans for a bitcoin trading operation. Two of the leaders planned for the unit met with the New York Times to discuss how the bank intends to obtain regulatory approval and calculate the risks inherent to the nascent space. For now, at least, Goldman's bitcoin transactions will be limited to institutional investors.

You can read the whole perspective of the mid-year investment here.

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