Goldman Sachs had a complicated relationship with Bitcoin and other cryptographic resources – dating back to years ago but seen in full complication in 2017. Then, within a month, he announced he saw Bitcoin "not the new gold" and too volatile, followed by an announcement shortly after they opened a Bitcoin trading bank.
This week, the gigantic American investment company, has made another announcement in which it is thought that the prices of Bitcoin will continue to fall and that the cryptocurrencies have not satisfied the idea of the "store of value" that many have supported.
The price of Bitcoin has already fallen 60% from its all-time high and analysts continue to send conflicting messages on the price movement from here. The words of Goldman Sachs certainly paint a pessimistic tone for the price of BTC, but the company has continuously expressed its doubts about the value of Bitcoin (in relation to its trading price), so the news is not shocking. More than the same from Goldman, although this week they were a bit more specific about why they are bearish on the price of Bitcoin.
The company has listed several reasons to support their thinking; but mainly focused on the excessive attention of the media, on the influx of purchases and on the novelty of many coins that prevent them from preserving, or containing, value.
However, the company has remained committed to its traders and investors who have access to investments in these commodities, so perhaps the demand for a bearish price reflects the company's desire to greater regulation in the cryptic world.
Goldman also pointed out that Bitcoin and other cryptocurrencies, despite the spike of attention from 2017 to date, still represent a very small portion of world wealth and money transfers.
In their words:
"Such declines will not have a negative impact on the performance of financial assets because cryptocurrencies represent only 0.3% of global GDP as of mid-2018," he said. "In fact, we believe that they collect many more traditional media and the attention of social media than is guaranteed."
If Goldman is right or wrong, it remains to be seen. What we know is that, despite their apprehensions, they, along with other Wall Street and international companies, are interested in exchanging cryptocurrencies, and their clients are intrigued by adding these coins to their wallets.