Bitcoin is not an asset class, according to Goldman Sachs

According to a Twitter post shared by Digital Currency Group CEO Barry Silbert, who was involved in a recent interview with Goldman Sach customers, one of the largest US banks does not recognize Bitcoin as a stand-alone asset class.

This also applies to other cryptocurrencies.

In one slide, Goldman Sachs explains that cryptocurrency is not able to generate positive cash flow such as bonds, does not reduce volatility and does not provide diversification.

Analysts at the bank are also convinced that Bitcoin is unable to protect its investors from inflation (contrary to what its supporters believe).

Pouring contempt on crypto


The planning of this type of Bitcoin-related conversation with its customers by the bank based in New York is perceived as a sign that it is changing its position towards the digital currency.

The conversation was finally announced a few weeks after Paul Tudor Jones, one of the world’s most prominent investors, lent nearly two percent of his Bitcoin portfolio to hedge against the weakening of funds he considers a “wasteful asset.” . “

Goldman Sachs, however, shattered that optimism by presenting Bitcoin in a negative light to its customers.

In addition to denying that Bitcoin is a separate asset class, Goldman Sachs also drew attention to cases of illegal use such as Ponzi schemes, ransom software, money laundering software and dark network markets.

Slowly but surely


Although attacking the flagship cryptocurrency in a customer conversation, Goldman Sachs has tried to engage with crypto in the past.

In particular, the bank has invested in such large crypto companies as Circle and BitGo.

The bank was also rumored to launch its own Bitcoin trading office in 2018, but much of the news was refuted by Goldman Sachs CEO David Solomon.

Meanwhile, JPMorgan Chase, the number one bank in the United States, whose CEO Jamie Dimon called Bitcoin a “scam” in 2017, recently added Coinbase and Gemini as its first crypto customers.