Goldman Sachs: Bitcoin is Not The New Goldbr>
Investors are being warned that bitcoin and other cryptocurrencies are not the “new gold,” at least in the view of the Goldman Sachs financial firm.
In a note to its investor community, Goldman touted precious metals as “a relevant asset class” for portfolios. “The use of precious metals is not a historical accident – they are still the best long-term store of value out of the known elements,” the investment bank said.
At the same time, Goldman noted that bitcoin is not a great store of value. “Gold wins out over cryptocurrencies in a majority of the key characteristics of money,” Goldman said. The firm cited the risks of hacking and “significant regulatory risks,” including the recent Chinese ban of initial coin offerings (ICO).
Earlier in October, Goldman CEO Lloyd Blankfein issued a tweet detailing his feelings on bitcoin:
Still thinking about #Bitcoin. No conclusion – not endorsing/rejecting. Know that folks also were skeptical when paper money displaced gold.
— Lloyd Blankfein (@lloydblankfein) October 3, 2017
Ironically, a report issued today by CB Insights indicated that Goldman Sachs is one of the biggest investors in blockchain technology, joining tech giant Google in that rarified ranking.