Goldman Sachs Says Cryptocurrencies are not an Asset Class

Goldman Sachs was reportedly launching a bitcoin trading desk back in 2017-2018 when the crypto markets were at their peak of popularity; late last week the company hosted a conference call where they listed five reasons that cryptocurrencies including bitcoin are not an asset class; the reasons include do not generate cash flow like bonds, do not generate any earnings through exposure to global economic growth, do not provide consistent diversification benefits given their unstable correlations, do not dampen volatility given historical volatility of 76% – on March 12, 2020, the price of bitcoin fell 37% in one day and do not show evidence of hedging inflation; the call was met with contempt by the crypto community who say the bank is living in the past; Goldman Sachs also said a security whose appreciation is entirely dependent on whether someone is willing to a higher price is not a suitable investment for the bank’s clients. Financial Times

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    With efforts in many different areas of the team, she helps manage, organize and execute digital and event content. She works with webinars, podcasts, social media along with managing the hundreds of speakers that attend our conferences. Emily was a part of the Zimmerman Advertising Program at the University of South Florida. She graduated in 2019 receiving a Bachelor of Science in Business Advertising.