Goldman Sachs Expressed Bearish Views on Cryptocurrency and Expects More Price Declines for Bitcoin
Goldman Sachs appears to have mixed feelings towards Bitcoin, with the firm’s investment strategy group not expecting for Bitcoin to do well moving into the future.
The bank’s investment management group highlighted “cryptocurrency mania” as one of six factors affecting markets for the remainder of 2018.
According to a report from Business Insider, the investment strategy group’s leader, Sharmin Mossavar-Rahmani stated:
“Our view that cryptocurrencies would not retain value in their current incarnation remains intact and, in fact, has been borne out much sooner than we expected.”
Sharmin later noted that cryptocurrencies, specifically Bitcoin, do not fulfill the prerequisites required to be classified as a currency. The executive added:
“We expect further declines in the future given our view that these cryptocurrencies do not fulfill any of the three traditional roles of a currency: they are neither a medium of exchange, nor a unit of measurement, nor a store of value.”
For the most part, the New York-based company has expressed bearish views on cryptocurrency, which lines up with the Goldman Sachs midyear economic-outlook report.
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