According to a leaked PowerPoint slide, Goldman Sachs, in a May 27 call discussing the U.S. economic outlook, stated that cryptocurrencies are not an asset class. The wording of the slide appears to discourage its clients from investing in the up and coming technology-based asset. This stands in stark contrast to the views of former presidential hopeful, Michael Bloomberg, whose financial reform plan unequivocally called Bitcoin an asset class.
Purported Goldman Sachs Slide From May 27 Call. Source: Ryane Browne’s Twitter Account.
Bloomberg: Better than gold
Michael Bloomberg’s plan openly acknowledged cryptocurrency as a major asset class. It also called for a transparent regulatory framework:
“Cryptocurrencies have become an asset class worth hundreds of billions of dollars, yet regulatory oversight remains fragmented and undeveloped. For all the promise of the blockchain, Bitcoin and initial coin offerings, there’s also plenty of hype, fraud and criminal activity.”
It should be noted that most, if not all, of Goldman Sach’s Bitcoin (BTC) alleged criticisms could also be levied against other established assets, such as gold. Notably, Bloomberg analyst Mike McGlone, who is frequently bullish on the cryptocurrency, believes Bitcoin to be a better store of value than gold because of the inelastic nature of its supply:
“Unlike quasi currency brethren gold, higher prices won’t be an incentive for more supply.”
This article will be updated as more news of the call will become available.
Published at Wed, 27 May 2020 15:19:00 +0000