Goldman Sachs Cautions Rich Clients on Crypto Craze, Belittles Bitcoin

Goldman Sachs Cautions Rich Clients on Crypto Craze, Belittles Bitcoin

With the correction which occurred on the crypto market last week, the talks about the start of a huge crash (so-called ‘bubble-bursting’) stirred up. Against this background, the shark of the financial business decided to come out with an official statement.

The American multinational finance company Goldman Sachs said cyber money’s value would not be maintained ion the same level it is right now. Therefore, the finance titan notified its most opulent customers that they should try not to become victims of virtual money craze. In the particular caution, Goldman Sachs also pointed out that this frenzy has surpassed the bubble margin.

Our top trading bots

Bitcoin Is Not Blockchain: Goldman’s Explanation of Delusion

The caveat of Goldman Sachs is displayed on 108 pages in a paper called “(Un)Steady as She Goes.” The firm’s Private Wealth Management bureau turned to its customers with over $10 million in investable possessions with the following message in particular:

“While we do not know if bitcoin or any other cryptocurrency will double or triple from prevailing prices, we do not believe that these cryptocurrencies will retain their value in the long run in their current incarnation.”

Albeit mentioning that BTC and its brethren do not offer any essential benefits, the firm explained that it remains pretty optimistic concerning the potentials of cyber money and blockchain on the whole. In the release, it was stated that the company regards the idea of blockchain as vigorous thanks to its simplicity of usage across the world, prevention of money laundering and other malicious actions as long as all operations can be tracked, security policies, as well as cheap transactions. However, Goldman emphasized, bitcoin, in particular, does not offer all that.

So the reason, why BTC surges in price, is rather speculation than the rational background that the currency offers. Sticking to such ideology, Goldman reminded that bitcoin frenzy could have bubble traits and even compared it to the tulip craze in the 1600s. The firm made it clear that they do not hesitate on whether the rate of BTC has been mostly driven by speculation or not. Goldman believes that virtual money has ferried the bubble margins on the market.

No Worries For Big Finances

But even if the bubble goes off, Goldman stated, it is unlikely that the traditional financial market and the worldwide economy will be affected that much. Arguing Wells Fargo latter analysis, the firm emphasized that classical stock market will be able to hold on, at least how the current market allows forecasting it.

By the way, in December 2017, one of Wells Fargo analysts, Christopher Harvey said that in his opinion the plunge of prices in cyber money market started influencing equities.

Treasury to the rescue? Officials to clarify crypto tax reporting rules in infrastructure bill: report
The United States Treasury Department is reportedly seeking to clarify the definition of brokers in the bipartisan infrastructure bill passed by the Senate...
Tether promises an audit in 'months' as Paxos claims USDT is not a real stablecoin
There will be an official audit of the world’s most popular stablecoin Tether within months according to the project’s general counsel.An audit for the...
CoinShares to acquire ETF index business from Alan Howard's crypto firm
European digital asset manager CoinShares announced it is acquiring the exchange-traded fund (ETF) index business from crypto firm Elwood Technologies for...
New York locals accuse gas-fired mining operation of heating Seneca Lake
New York locals are accusing Greenidge Generation’s gas-fired Bitcoin mining plant of heating Seneca Lake in upstate New York. On a daily basis, the Greenidge...
French Football Federation launches official player NFTs with Sorare
With the Euro 2020 championship in progress, blockchain-based fantasy soccer game Sorare has announced the licensing agreement for a national sports association...
Bloomberg report calls Bitcoin 'refreshed and discounted' as BTC price bounces at $36K
Bitcoin (BTC) bounced off a predicted floor on June 4 as the dust settled on the latest market collision with Elon Musk.BTC/USD 1-hour candle chart (Bitstamp)....
BSC's Impossible Finance raises $7M for multi-chain DeFi incubator
Impossible Finance, a Defi protocol built on Binance Smart Chain, has completed a $7 million seed funding round backed by over 125 institutional and angel...
New DeFi ‘passport’ could enable under-collateralized crypto loans
Decentralized finance (DeFi) protocol Arcx has announced the launch of Sapphire v3, a DeFi passport allowing crypto users to pseudonymously build and verify...
Here’s why bulls aren’t buying the Bitcoin price dip to $50,000
Bitcoin (BTC) has been bouncing at the $51,000 support for the past 44 days. Typically, this would be interpreted as a positive occurrence, especially considering...
A nightmare on Stable Street: Centralized stablecoins may be doomed
Over the last couple of years, we have seen a lot of interest from central banks and governments in the stablecoin market. The reason behind it lies in...
'ETH has outperformed BTC by 250% since inception': Raoul Pal triggers debate
Real Vision co-founder and CEO Raoul Pal has sparked a spirited debate after predicting that Ethereum and other coins with "network effects" will outperform...
Fei Labs raises 639K ETH in genesis event
Fei Labs concluded a successful genesis launch of its Fei stablecoin on Saturday, raising nearly $1.3 billion in Ethereum (ETH) from over 17,000 contributors,...
Weiss Ratings Tells It’s Time to Invest in BTC, Google Unveils Bitcoin Trends
As bitcoin barely manages to stay afloat, with its price being below $3,450, it might be the best time to invest in it. Recently, the independent rating...
Cryptos vs. Blockchain: One Is Useless, The Other Has a Chance
The author of the latest Economist’s article regarding cryptos and blockchain argues that the former are of no use, while the latter still have something...
PayPal’s Exec Believes Bitcoin Will Become a Popular Payment Option
Several years ago American online payments system PayPal was one of the risk-takers who started accepting BTC. Now, the company’s executive John Rainey...