Goldman Sachs Says Bitcoin "Is Not A Fraud," Plans To Begin Trading Within Weeks

Authored by Wiliam Suberg via CoinTelegraph.com,

Goldman Sachs has said Bitcoin “is not a fraud” as it unveiled plans to buy and sell cryptocurrency, the New York Times reported May 2.

image courtesy of CoinTelegraph

In a move which sets the investment banking giant apart from its Wall Street competitors, Goldman will initially offer various contracts with Bitcoin exposure before rumoredly entering the trading arena.

Commenting on the decision, Rana Yared, an executive involved in creating the offerings, said the bank had been “inundated” with client requests.

“It resonates with us when a client says, ‘I want to hold Bitcoin or Bitcoin futures because I think it is an alternate store of value,’” she told the publication.

“...It is not a new risk that we don’t understand. It is just a heightened risk that we need to be extra aware of here.”

She added that Goldman “had concluded Bitcoin is not a fraud,” a poignant statement in an industry where competitor JPMorgan CEO Jamie Dimon’s infamous description of Bitcoin still resonates.

Nonetheless, even Goldman CEO Lloyd Blankfein publicly stated Bitcoin “is not for him” during its all-time price highs in December 2017, and Yared appeared quick to dispel any myths that the bank was a ‘Bitcoin believer.’

“I would not describe myself as a true believer who wakes up thinking Bitcoin will take over the world,” she added.

“For almost every person involved, there has been personal skepticism brought to the table.”

Justin Schmidt, left, who will run Goldman Sachs’s Bitcoin operation, with Marianna Lopert-Schaye, vice president of principal strategic investments, and Neema Raphael, who leads research and development.

Still, as The New York Times concludes, the suggestion that Goldman Sachs, among the most vaunted banks on Wall Street and a frequent target for criticism, would even consider trading Bitcoin would have been viewed as preposterous a few years ago, when Bitcoin was primarily known as a way to buy drugs online.

Comments

lookslikecraptome Theosebes Goodfellow Thu, 05/03/2018 - 12:42 Permalink

I love the part about a store of value.  The dude who sold his house for BTC last December finally killed himself. 

I will sell any fool anything they want as long as I make money.  So will Goldman or any other broker that does not know shit about financial markets.

"How are the grand kids Mrs. Smith. Sorry ur husband just died. Have you heard of OPTIONS? They are really quite simple and based on MATH"  

In reply to by Theosebes Goodfellow

rrrr Klassenfeind Thu, 05/03/2018 - 12:48 Permalink

You cannot live without risk. Not only is it impossible, it isn't even desirable. You only need to learn how to calculate risk and manage loss.

If you want to live in the palace, you have to choose the path that has the dragon on it.

In reply to by Klassenfeind

FireBrander Bitchface-KILLAH Thu, 05/03/2018 - 11:38 Permalink

practically impossible for the state to know who owns Bitcoin and who does not own Bitcoin

If you made a million dollars in BTC and wanted to cash out...

"Almost everyone reading this is going to have a hard time getting their cash from the exchange.

The exchange is going to change the BTC to USD and take their fee.

After that, they will ask for further info from you, with about a dozen extremely intrusive questions, including demanding that you justify where the funds came from to buy the original BTC, show pay receipts from the job that provided the funds to buy the BTC and show copies of your IRS tax filings, and a lot more. If you don't satisfy them, they will tell you that they can't send you the funds because they would be violating the USA's AML/KYC provisions.

This is the biggest problem we all will have. I am including USA based licensed exchanges.

How do I know this? Because it is already being done at exchanges when one goes over a certain amount of deposit/withdrawals/buy/sell. I am referring to accounts which have ALREADY provided all personal information and been approved, and for customers who are staying within the exchange's stated limits for buy/sell and deposit/withdraw.

This is something that should concern all of us."

"Most people commenting in the thread are in dream land and have no sense of the realities, and lack even the most basic understanding of the tax laws and bank laws and the common abuses of citizens by the US Gov and the banksters."

https://www.reddit.com/r/Bitcoin/comments/7fnwwd/if_you_made_a_million_…

In reply to by Bitchface-KILLAH

FireBrander Bitchface-KILLAH Thu, 05/03/2018 - 11:46 Permalink

Oh, ok, I see...if I "work directly" the IRS isn't going want it's cut; got it!

Bitcoin will go the way of no online sales taxes...even worse...not only will the State "know" who owns crypto, they will retroactively go after back taxes owed on any profits once they figure it all out...if you are not paying taxes on Capital gains, that is tax evasion and there is no greater crime.

Oh, and if you are mining bitcoin, and not reporting that as income...that is also tax evasion..

Me thinks you are going to, eventually, end up broke and/or in prison...prisons are full of "smart people" that "beat the system".

The bankers killed The Son of God; you will go down with far less effort.

Crypto is the perfect tax haven

Ask your mom to put that on your headstone; it's so fitting.

In reply to by Bitchface-KILLAH

Bitchface-KILLAH FireBrander Thu, 05/03/2018 - 11:48 Permalink

Yeah just go and tell them that.  Give them your Bitcoin wallet address too.  FFS you people are so dense it's not funny...

Let us review:

* Bitcoin was not created by NSA

* Bitcoin is not a ponzi scheme

* There is no sinister conspiracy surrounding Bitcoin

* Bitcoin was not created by AI because there is no AI

* Bitcoin is totally fun and safe to own for the whole family

* Bitcoin is a great long-term investment

* Government cannot shut down or stop Bitcoin

* Bitcoin and crypto will grow to the point where it collapses the fiat system

In reply to by FireBrander

rrrr Coinista Thu, 05/03/2018 - 12:28 Permalink

Of course I am not an expert. But the sort of negativity that I see posted on this web page today is highly characteristic of the kind of attitude one typically encounters in the earliest days of a venture like Xerox or Microsoft or AT&T or Moving Pictures or horseless carriages, where nobody says anything positive about it, but the smart money is jumping into it with both feet.

Gentlemen, movies and television are here to stay, and vaudeville is not coming back.

 

In reply to by Coinista

ProstoDoZiemi Bitchface-KILLAH Thu, 05/03/2018 - 17:41 Permalink

No one can have a normal conversation with you because the first thing that comes out of your mouth is "you're stupid, you're an idiot, you lack intelligence"

If you're so smart.... teach ..... and do so by explaining your argument instead of going straight to insults like some 12 year old, others on here do a damn well job teaching through their arguments,

you should take notes

In reply to by Bitchface-KILLAH

FireBrander Team_Huli Thu, 05/03/2018 - 11:30 Permalink

"It resonates with us..." that many of our clients are idiot lemmings that will invest in just about anything we offer up.

Edit:
Geesh! Just studied that photo above...those two Man-bun dudes...they want my trust? Really, what idiot would trust them with a dollar...I trust that I'd give them a dollar, and after subtracting management fees and an "unexpected market downturn", they'd give me back 10 cents.

In reply to by Team_Huli

52821740 Bitchface-KILLAH Thu, 05/03/2018 - 13:12 Permalink

Bitchface your always telling us how smart you are so please enlighten me as one  of the dumb masses:

1. What is the Intrinsic value of one Bitcoin?

2. If you can't supply the answer to question 1 tell me what the definition is of  

A. an investment. 

B. A speculation. 

3.  Reveal how you know the Government won't make any laws detrimental to Cyrptos

4. What makes you think you can permanently outsmart the law by avoiding tax and other government scrutiny

5. What do you do when your wallet.dat file is corrupted or stolen and your mother's cleaned up the papers in your bedroom?

6. So you don't keep your crypto on an exchange to avoid those pesky thieves and hackers but what happens when you want to sell it? surely you have to load it onto an exchange again if only briefly for the sale?

7. When you place a  sell order for  one million dollars worth of bitcoin how long from that point does it take before real money appears in your bank account?

8.  Have you considered in the worlds increasing desire to lower green house emissions the probability of future public backlash against cyrpto pollution? Many will laugh at that statement now unaware that the focus is already beginning. 

Thanks for lowering yourself to answer such ignorant stupid questions from such an unworthy disciple....

In reply to by Bitchface-KILLAH

Bitchface-KILLAH 52821740 Thu, 05/03/2018 - 13:32 Permalink

1. There is no such thing as intrinsic value... value does not exist outside human consciousness.

3. Government will make laws against crypto... I hope they make lots and come down hard.

4. I'm doing good so far thanks for asking.

5. If you are smart you made back-ups and back-ups of those back-ups and stored them all over the place.

6. You do not need exchanges to sell cryptos

7. Real money is fake.  Crypto is real money.  Banks are not important.

8. Again I hope they make lots of laws against crypto and crypto mining.

In reply to by 52821740