Tired claims that Bitcoin and cryptocurrencies are not an asset class say more about Goldman Sachs and the banking system itself, proponents argue.
Goldman wheels out legacy Bitcoin complaints
The main reason for the continued lack of attention, Goldman says, is that Bitcoin does not generate revenue flows for holders, for example, in the same way that stocks and bonds do.
“We believe that a security whose appreciation is primarily dependent on whether someone else is willing to pay a higher price for it is not a suitable investment for our clients,” a related PowerPoint presentation states.
Along with other claims including high volatility, the criticism is nothing new, Bitcoin having faced years of identical scorn from the legacy banking sector. Just last week, wealth manager Peter Mallouk told CNBC that despite its recent returns, there was “no need” for any investors to buy Bitcoin.
Goldman’s tone meanwhile riled some of the best-known figures in the Bitcoin industry and beyond.
Reacting, D-TAP capital founder Dan Tapeiro argued that the bank was simply concerned about its revenue stream.
“Goldman Sachs does not make fees when a client buys #bitcoin. Buying Btc is an implicit rejection of buying assets that Goldman Sachs sells upon which they make fees,” he wrote on Twitter.
Buying btc is a rejection of the worldview they sell upon which they make fees. Long PTJ/Short GS EVERY TIME.
Gemini exchange co-founder Tyler Winklevoss meanwhile argued that the attention being paid to Bitcoin suggested a longer-term shift was underway.
“Crypto used to be where you ended up when you couldn’t make it on Wall Street,” he tweeted.
The quality of Goldman Sachs’ recent research on #Bitcoin demonstrates that there has been a talent flippening. Today, Wall Street is where you end up when you can’t make it in crypto.
In another post, Winklevoss took issue with Goldman’s understanding.
“Me: What are you smoking? I thought Goldman was the bank on Wall Street for smart bankers,” he wrote.
Others simply reiterated that Bitcoin was immune to naysayers, as evidenced in recent years by high-profile criticism impacting the price less and less.
“In all honesty most of their arguments were cookiecutter,” School of Arms Media CEO, John Bednarski summarized.