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The US multinational investment bank Goldman Sachs continues with its 180-turns on the cryptocurrency industry. After its recent interest that included filing for a Bitcoin ETF and exploring crypto as an asset class, the institutionsâ latest report said virtual currencies are not a âviable investment.â
Crypto Is Not a Viable Investment: Goldman
Itâs safe to say that Goldman Sachs has displayed a controversial approach to the cryptocurrency space. The latest report coming from the Wall Street giant takes it back a notch by going to its hostile policy from previous years.
Titled âDigital Assets: Beauty Is Not in the Eye of the Beholder,â it touched upon some of the most recent concerns, including high energy consumption required in the process of mining. This topic was raised in May by Teslaâs Elon Musk, who criticized BTC for using too much coal fuel.
Despite numerous reports claiming otherwise, Tesla disabled bitcoin payments citing environmental issues.
The paper also touched upon cryptocurrenciesâ usage in ransomware attacks after numerous hacks transpired on US soil in recent months. After each, the perpetrators indeed requested the payments to be sent in bitcoin.
Furthermore, the document named impending regulations as the âbiggest risk to the speculative aspects of this ecosystem.â Keeping in mind all of these concerns, the bank concluded:
âAfter analyzing various valuation methodologies and applying our multi-factor strategic asset allocation model, we have concluded that cryptocurrencies are no a viable investment for our clientsâ diversified portfolios.â
The Goldman Sachs Investment Strategy Group should sign off its research pieces on crypto with âHave Fun Staying Poorâ. pic.twitter.com/TiedRBxWhI
â Alex KrĂŒger (@krugermacro) June 14, 2021
How Many U-Turns?
The mentioned-above word âcontroversialâ might not be strong enough to describe Goldmanâs ever-changing views on the industry.
The institution was among the first regulated entity to launch a crypto trading desk all the way back in 2017. Yet, that came amid the parabolic price increases, and when the year-long bear market followed, Goldman halted the initiative.
In the meantime, Goldman held a conference call in which it said bitcoin is not an asset class. Bank executives repeatedly questioned BTCâs ability to serve as a reliable store of value and blasted its volatility.
Yet again, Goldman restarted the trading desk this year when, once again, prices were skyrocketing to new highs. It also filed for a Bitcoin ETF with the SEC, explored launching custody services, added BTC to its year-to-date returns report, participated in investment rounds in crypto projects, and enabled clients to trade bitcoin derivatives.
With all of that in mind, itâs not such a surprise that Alex Kruger and other crypto community members viewed Goldmanâs latest U-turn as nothing out of the ordinary.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.