Goldman Sachs Says BTC Attention Much More Than Needed
Even after tearing through media headlines with announcements of launching their own BTC trading desk in 2018, Goldman Sachs holds strong on its concerns and hesitation with cryptocurrencies in general. The leading investment bank is convinced that prices will take a diver sooner than expected.
Too Many Eyes
The investment company has stated that Bitcoin will see another drop in value eventually. In a mid-year report, Sachs’ pointed to many concerns at the beginning of this year in a report named Unsteady As She Goes.
As per reports, the company’s strategy group director, Sharmin Mossavar-Rahmani stated that the company’s belief that cryptocurrencies cannot hold onto their immediate values only fuels their ideas and opinions and has proven them quicker than expected by Goldman Sach’. The CIO then explained that digital currencies are not mature enough to play out certain crucial roles related to an actual currency with the base requirements being exchange method, monetary units and a store of value.
Additionally, he adds that cryptocurrencies, in general, were not yet developed enough to affect larger financial and monetary sectors, markets and more. He attributes this to the global market cap on cryptocurrencies and how they only contribute 0.3 percent in total. He also said that too much media attention was given to these digital currencies than required, creating a craze within the industry.
Shift in Dynamic
Recent reports may confuse or catch anyone involved in crypto off guard. At the end of last year, reports revealed the company’s intention of initiating an OTC desk for investors to draw more attention to iconic cryptocurrencies. Despite reports that the trading desk would see its launch this year, no such thing has occurred.
In the recent publication, Bitcoin was only addressed a handful of times throughout the entire paper and a significant focus was turned towards several other topics involved in investment markets. Among these factors were economic growth on a global scale, US recession possibilities, national politics and more. Nathaniel Popper, a journalist for NYT replied to several allegations from the community and attempted to remind his online followers that many companies the size and stature of Goldman Sachs more than often work alone but instead bring together several sections to form different calculations and expectations of each respective market.