Goldman Sachs Admits Bitcoin Can Succeed As Real Money

post image

Just this week the early bitcoin skeptic, the CEO of the largest bank in the US JPMorgan Chase Jamie Dimon revealed he regrets labeling bitcoin as a ‘fraud’, acknowledging that the ‘blockchain is real’. Now, it seems, the turn is for the multinational and globally influential finance company Goldman Sachs.

In a recent report, published on Wednesday, January 10, two company’s strategists highlighted bitcoin’s potential in terms of real money in the developing economies.

Bitcoin Has Nothing To Do In The U.S. But In The Rest Of The World…

According to Bloomberg, supply maladministration and the high level of inflation have fueled the drop in the value of many African countries’ currencies in sub-Sahara region. Therefore, foreign public currencies have conquered the market of such nations as Zimbabwe and the Democratic Republic of the Congo. If in the second one foreign fiat money makes up over 90% of the country’s loans and deposits, the second one had to give up on the own currency around three years ago due to the strength of external money.

No wonder that in emerging-market countries virtual money has way more potential than in the U.S., where the national currency dollar is steady and transaction fees are already satisfactory so its citizens don’t have to look up for alternatives. Besides developing regions, bitcoin has also a lot to offer in states, where authorities impose sanctions or other types of restrictions on the adoption of foreign public currencies.

That’s precisely what Goldman Sachs strategists Charles Himmelberg and Zach Pandl believe in. In their recent report, two specialists emphasized that within the past decades the American national currency has been relatively useful. But bitcoin could replace some functions that fiat money offer in the developing world.

“In those countries and corners of the financial system where the traditional services of money are inadequately supplied, Bitcoin (and cryptocurrencies more generally) may offer viable alternatives,” suggested Goldman Sachs strategists.

Future to Be Boring If Bitcoin Adopted Widely

Additionally, the experts pointed out that the situation will not be the same if bitcoin is used as real money. Should the virtual money be used more widely, there is less possibility that bitcoin and its ilks will bring lots of profits as we are observing it nowadays. So investors should brace for a more ‘boring’ future.

“Our working assumption is that long-run cryptocurrency returns should be equal to (or slightly below) growth in global real output—a number in the low single digits. Thus, digital currencies should be thought of as low/zero return or hedge-like assets, akin to gold or certain other metals,” said Himmelberg and Pandl.

Transforming Attitudes

It is surprising how the sharks of the financial world become less skeptical about bitcoin. The report by Goldman Sachs experts has been subsequent to the astonishing acknowledgment by JPMorgan’s Jamie Dimon. In September 2017, he made scandalous remarks regarding bitcoin, labeling the most known digital currency a “fraud”. But just after five months, he changed his position, claiming on Fox Business that he admits blockchain is real and bitcoin is something that will not governments calm.

Despite Bear Market Bitcoin Will Survive, Says NYSE Chair
The past two weeks have been a challenge for the entire crypto-market with bitcoin leading the drop. The total crypto market cap dipped from relatively...
Financial Services Giant Fidelity Launches Crypto Trading Platform
Fidelity Investments, a financial services titan with more than $7 trillion in client assets, has leapt onto cyber-money bandwagon too. This week the company...
Malta’s Prime Minister: Blockchain Makes Cryptos Inevitable Future of Money
The leader of the Maltese cabinet Joseph Muscat has openly claimed that unaltered ledger will help bitcoin and its brethren become the future of money....
Blockchain & BTC May Help Japan Reiterate Its 1980s Economic Success
Blockchain, bitcoin and other cryptos can be the cause of next bonanza of the Japanese economy. The country has been struggling to restore its last century...
Chinese President Xi Jinping Called Blockchain Applications “Breakthrough”
China is known to be harsh when it comes to cyber tokens and ICO. Despite this, it is still a world's centre for the DLT evolution. Moreover, the Chinese...
A Coder Stored The Historic Korean Peace Declaration On Blockchain
On April 27, the history was made as CoinDesk Korea. The 27-year-old man was the one who programmed the agreement both in Korean and English languages...
Tim Draper Predicts Bitcoin Will Cost Quarter of A Million In Four Years
As between April 12 and April, 13 bitcoin saw a sharp increase of over $900, it is no wonder that more BTC bulls will come out with their suggestions...
John McAfee Claims He Gets $105,000 For Each Twitter Crypto Ad
John McAfee, a known software mogul and the cyber-money eager supporter, perhaps, has been shaping public confidence in cryptos for huge sums. Recently...
SETI: Crypto-enthusiasts Hinder The Search For Aliens
The scientist of the Institute for the Search for Extraterrestrial Intelligence (SETI) said that the "cryptocurrency fever" and the popularity of mining...
Former Chief Developers Of Alibaba And Baidu Launch A Blockchain Academy
Developers of the largest giant companies in China are creating an academy focused on blockchain technology. Its goal is to contribute to the development...
Will Switzerland Become a ‘Crypto Valley’?
Whilst lots of governments all over the world are troubled about the cyber money frenzy, which induces money laundering and other illicit actions as well...
NASA Will Create An Unmanned Spacecraft That Will "Think" Thanks To AI And The Blockchain
NASA began a new research project, which plans to use artificial intelligence and a blockchain for the intelligent system of an unmanned spacecraft. The...
Hold It Or Take Profits? VC, Early Bitcoin Investor Knows The Answer
Bitcoin has demonstrated quite a significant growth for itself in 2017, soaring up by around 1,400% between January and mid-December. Currently, the king...
Bitcoin Was Predicted in a Book Two Decades Ago
“Soon, you will pay for almost any transaction over the Net or World Wide Web at the same time you place it, using cybercash. This new digital form of money...
Confido: How to Raise $374,000 ICO and Disappear
The ICO Confido, which sold tokens called CFD, attracted $ 374,000 from investors and after that has completely vanished! The startup removed all information...