The investment giant Goldman Sachs recently announced the launch of a new cryptocurrency trading desk. However, this optimistic decision does not necessarily mean that the firm is all positive about Bitcoin.
Instead, the investment giant recently released its midyear economic outlook report, where a team of investment strategists predicted that the Bitcoin price will likely continue its downward trend – even despite having dropped more than $12,000 since its mid-December peak.
As the analysts, led by the chief investment officer Sharmin Mossavar-Rahmani stated in the report:
“Our view that cryptocurrencies would not retain value in their current incarnation remains intact and, in fact, has been borne out much sooner than we expected.
We expect further declines in the future given our view that these cryptocurrencies do not fulfill any of the three traditional roles of a currency: they are neither a medium of exchange, nor a unit of measurement, nor a store of value.”
In January 2018, the same team of strategists predicted that cryptocurrencies would not be able to retain their valuations in the long run. This time again, they downplayed their concerns that a cryptocurrency market crash would spill into other equities markets, stating:
“Importantly, we continue to believe that such declines will not negatively impact the performance of broader financial assets, because cryptocurrencies represent just 0.3% of world GDP as of mid-2018,” the analysts said. “In fact, we believe that they garner far more traditional media and social media attention than is warranted.”
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