Goldman Sachs’ thoughts anger the crypto community

28 May 2020

News of Goldman Sachs briefing client on Bitcoin caused a stir in the cryptocurrency world this morning. People are wondering if the famous investment bank will give Bitcoin its seal of approval. Given that Goldman Sachs has traditionally been seen as an influential institution in banking (that’s not to mention their reputation for providing insight from their conversations with corporate executives) this might cause an increase in interest.

Deeply disappointing to crypto supporters, the slides of the company’s presentation, ominously called “US economic outlook & implications of current policies for inflation, gold and bitcoin”, leaked online and can be seen on social media.

One of the slides presented highlights that cryptocurrencies like Bitcoin are not even an asset class to begin with and have neither cash flow nor a hedge against inflation. There was also another slide about cryptocurrency provided a notable takeaway for it being associated with illegal activity such as Ponzi schemes and ransomware. This is unsurprising, the bitcoin supporters on social media have expressed their anger with Goldman Sachs. These people include Tyler and Cameron Winklevoss, the twins that became famous after their legal battles with Mark Zuckerberg before becoming Bitcoin billionaires.

In the big picture, Wednesday’s development is likely to become just another footnote in the long-running feud between bitcoin boosters and the traditional financial establishment – a feud that has seed Warren Buffett tar bitcoin as “rat poison squared”.

Despite all the type of social media, there might be an overlap of the 2 worlds. At the beginning of this month, it was reported by the Wall Street Journal that JPMorgan, as a banking client, was taking on crypto giant Coinbase while, on Wednesday, Coinbase announced it was acquiring a trading firm composed of traditional financial executives—including one from Goldman Sachs.

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