Goldman Sachs: Bitcoin is a lousy investment - Kakiforex.com - Financial Market Media No. 1 in the World Goldman Sachs: Bitcoin is a lousy investment Goldman Sachs: Bitcoin is a lousy investment

June 21, 2021

Goldman Sachs: Bitcoin is a lousy investment

 According to a survey of top managers conducted by Bank of America, the majority believes that bitcoin will continue its decline and still has all the signs of a "bubble", despite the fall of its rate by $30,000. The series of unflattering statements for bitcoin was intercepted by another large bank with a world name, Goldman Sachs. A new report presented by the bank's experts shows that bitcoin does not have long-term value and is not an asset class. Although a month ago, the head of the digital assets department, Matthew McDermott, said that bitcoin is an investment tool. However, this is not the first time that large companies change their perception of bitcoin, which only once again proves the instability of this ecosystem. There is simply no consensus on bitcoin, since bitcoin itself is not regulated by anyone. There is no head office where you can ask relevant questions. So, everyone counts in their own way. Bitcoin is growing, and many experts talk about the attractiveness of this asset as an investment. Bitcoin is falling, and many experts say it has neither the function of money nor its value. "We have refrained from repeating the positive and negative hype that surrounds this ecosystem because we do not want clients to be seesawed, even swayed by a cacophony of assertions, many of them unsubstantiated," Goldman Sachs says in the report. The report also says that bitcoin consumes too much electricity, which pollutes the environment. In addition, the bank's experts believe that breakthroughs in other technologies can make the blockchain technology obsolete. For example, we talk about the emergence of quantum computers. Also, there is a possible tightening of the regulation of bitcoin circulation. "After analyzing various valuation methodologies and applying our multi-factor strategic asset allocation model, we have concluded that cryptocurrencies are not a viable investment for our clients' diversified portfolios." the report says. Needless to say, this information can only further reduce the demand for cryptocurrency, if large banks do not recommend their clients to deal with bitcoin. Thus, from our point of view, the fundamental background only continues to deteriorate day by day. Naturally, along with it, the prospects for the first cryptocurrency in the world continue to deteriorate. We believe that the target of $30,500 looks quite real for this week. We recommend that market participants continue to closely monitor any news from the cryptocurrency sphere. Perhaps in the near future, Elon Musk or representatives of Tesla, who are very fond of commenting on bitcoin, will come to the forefront with a new statement. It should also be noted that at this time, only MicroStrategy continues to actively buy cryptocurrency. Let's see where this investment strategy will lead the company.