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Goldman Sachs confesses Bitcoin is Real and has Real benefits

Jan 11, 2018 Posted /  1767 Views

Goldman Sachs confesses Bitcoin is Real and has Real benefits

Goldman Sachs, a leading global investment bank, securities and investment management firm has acknowledged that Bitcoin and other digital currencies are real money and soon they will accomplish better than fiat currencies in developing economies.

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The investment bank pondered about the oldest cryptocurrency- bitcoin and hurdled in the debate with a nine-page report to clients bearing the title "Bitcoin as Money." The report states that Cryptocurrency space along with bitcoin is on the wheels right now, and in the upcoming years, it will be bigger than it was in 2017. The report says that it does not essentially mean that everyone will be rich by investing in Digital currencies, but what it means is, now everybody consider it to be serious tender if not legal.

This explains that the majority of the prominently ranked banks are taking it sincerely; a rules-based system can be expected at least for bitcoin and it’s trading if not all cryptocurrencies. It is noteworthy that more companies are likely to permit bitcoin as a mode of payment. The popular travel website Expedia is already allowing users to craft their travel arrangements in bitcoin.

Goldman strategists wrote in the “Bitcoin as Money”:

“In recent decades the U.S. dollar has served its purpose relatively well. [But] 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.”

Nevertheless, the investment bank warns the contributors do not expect the 2017 returns as now the fresh year has approached. They state that

“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.”

The methodized Change of scenario?

The extraordinary modification has facilitated to tune the skepticism of big banks and “mainstream” investors into an affirmative mood. Most of the big banks had dubious views about the digital currency and never treated them as equal. Last year, JPMorgan Chase CEO Jamie Dimon tweeted a post and famously called Bitcoin a fraud, while legendary billionaire investor Warren Buffett insisted that people should not consider Bitcoin as real money and they should stay away. Similarly, hedge fund tycoon Ray Dalio flagged off Bitcoin as a bubble.

Overhauling significance

Goldman Sachs holds considerable influence in the space of economics and politics. As per the reports of the popular media outlets The Independent and Al Jazeera, “Goldman is the bank which controls the world”. The Atlantic is little subtle in its choice of words, stating to Goldman Sachs’ growing impact in the US government as “The Quiet Coup.”

Similarly, the Huffington Post has written comprehensively and has elaborated about the “revolving door” between Goldman Sachs and the US government. The publication points out that two Goldman Sachs CEOs - Rubin and Paulson - have served as US Treasury Secretary, and former CEO Jon Corzine became a US senator. Other Goldman alumnus serves in different positions in the American government and finance.

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