A recent report from major U.S. investment bank Goldman Sachs shows that the bank appears to have recognized that cryptocurrencies are an emerging new asset class. Although just a year ago the bank said that bitcoin “is not an asset class” or “an appropriate investment.
Economist Alex Krüger tweeted that Goldman Sachs turned to cryptocurrency-related companies such as Galaxy Digital, Global FX and Chainlaysis, as well as commentators such as Nouriel Roubini, for their opinions and views.
In the report, the bank’s researchers noted that many large cryptocurrencies are unique and rightfully have a place in the market. For example, Bitcoin is a highly capitalized currency, Ripple’s XRP is a real-time settlement system, Ether is a smart contract platform, Binance Coin is a token for practical applications, and Polkadot is a blockchain platform that can interact with other networks.
As a result, each cryptocurrency has inherent characteristics that allow it to appeal to a specific user base, Goldman added. Analysts say the value of Bitcoin depends on its use and distribution, and Galaxy Digital CEO Mike Novogratz noted that from this perspective, the influx of institutional capital confirms the attractiveness and high market development of cryptocurrencies.
Michael Sonnenschein, CEO of Grayscale Investments, echoed the same sentiment, calling the limited supply of bitcoin “a hedge against inflation and currency devaluation. He also noted that while cryptocurrencies did not escape the turmoil of the 2020 epidemic, they recovered more quickly and outperformed other asset classes.
However, Nouriel Roubini, a professor of economics at New York University, said he completely disagrees with the idea that something that has no income, no utility or no relationship to economic fundamentals can be considered a store of value or an asset. He also doubts that most institutions are willing to take on the volatility and risk of cryptocurrencies, as the volatile price action of recent days has reminded people.
The Goldman Sachs analyst also compiled a chart showing all the ups and downs in Bitcoin’s history. The chart shows that since 2013, bitcoin has consistently rallied to new highs, no matter how deep the declines have been.
Notably, Goldman Sachs said a year ago that cryptocurrencies were not an asset class.
Since then, however, Goldman Sachs has announced that it will offer bitcoin and other cryptocurrencies to its private wealth management group, and has even created a crypto trading team.
Posted by:Ryan，Reprinted with attribution to:https://coinyuppie.com/report-goldman-sachs-to-study-cryptocurrencies-as-an-asset-class/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.