In a move that should not surprise anyone in the crypto community the much anticipated Goldman Sachs conference titled “US Economic Outlook & Implications of Current Policies for Inflation, Gold and Bitcoin” conducted on May 27, 2020, Goldman Sachs has asked its investors to stay clear of bitcoin and gold.
The report highlighted how cryptocurrencies are a conduit to illegal activities. Tyler Winklevoss took his quip to Twitter calling out on the hypocrisy of Goldman Sachs. He tweeted:
Goldman Sachs: In 2019, $2.8 billion in Bitcoin was sent to currency exchanges from criminal entities. Fun Fact: Goldman Sachs facilitated $6 billion in money laundering via 1MDB scandal between 2012-13. Double standard much?
Missing the basics: Bitcoin is not a security
Page 30 of the presentation says “We believe that a security whose appreciation is primarily dependent on whether someone else is willing to pay a higher price for it is not a suitable investment for our clients. ”
However, Bitcoin was declared a commodity in 2015 by the CFTC, not a security.
Cameron Winklevoss couldn’t resist calling out this blunder via Twitter. He tweeted:
Hey Goldman Sachs, 2014 just called and asked for their talking points back. Bitcoin was declared a commodity by the CFTC in 2015 in the Coinflip order…so yea it’s an asset whose price is set by supply and demand. Just like gold. Just like oil. It’s a commodity.
Bitcoin is a death sentence to firms like Goldman Sachs
“Get a Horse” was the slogan when the first automobile came to the US. The owners of the Horse carts and those who relied on horse cart related industry were all skeptical about the automobile calling it ‘unreliable’, ‘dangerous’, ‘expensive’, etc.,
Any astute observer will quickly notice that we are hearing a similar rhetoric from Goldman Sachs about Bitcoin.
It is quite natural that Goldman Sachs is trying its hard to keep its own investors away from the alternative investments like Bitcoin and Gold.
The report concluded stating “We do not recommend bitcoin on a strategic or tactical basis for clients’ investment portfolios even though its volatility might lend itself to momentum-oriented traders.”
It was not a surprise really that Goldman Sachs is feeling bitcoin and cryptocurrencies are closing in on their business and they are trying to delay the inevitable as much as they can (or until the time they figure out a way to make money on digital assets), in our opinion.
Thank you for reading and sharing this article. Stay safe and healthy!
Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.
We do not endorse or guarantee the accuracy of the information and claims made.
All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.
Get ‘Week in Crypto’ news updates in ONE email.
We never spam your inbox and we only send one email per week
with updates, news, eBooks, tax updates, and more!
Get knowledge, not spam! Subscribe here.