Goldman Pans Bitcoin; Crypto Community Up in Arms

Crypto fans have not taken kindly to a Goldman Sachs presentation that fired potshots at bitcoin.

Digital AssetsNews

The offending presentation from Goldman Sachs (NYSE: GS) has sparked a raging controversy for its remarks against bitcoin. Luminaries from the crypto world took to Twitter and the media to lambast “the vampire squid” for its observations. (CNBC)

What Goldman Sachs said about bitcoin

The investment bank recommended that investors keep their distance from the cryptocurrency for these reasons:

  • unlike bonds, bitcoin generates no cash flow
  • bitcoin has no exposure to global economic growth and therefore does not generate any earnings
  • BTC has no diversification benefits
  • bitcoin is no foil against market volatility
  • there is no evidence that bitcoin serves as a question against inflation
  • bitcoin cryptocurrencies are a conduit for illicit activity

The bank also said that bitcoin only moves up in price if there is a bigger fool ready to buy it. It added insult to injury by likening bitcoin to the Dutch “tulip mania” between 1634 and early 1637.

Crypto digerati return fire

Here are the picturesque and acid ripostes from the crypto community against Goldman’s views.

Cameron Winklevoss:

Hey Goldman Sachs, 2014 just called and asked for their talking points back.

Bitcoin was declared a commodity by the CFTC in 2015 in the Coinflip order…so yea it’s an asset whose price is set by supply and demand. Just like gold. Just like oil. It’s a commodity.

Bitcoin does “not generate cash flow like bonds.” Because it’s not a bond. And the sky is blue.

Tyler Winklevoss:

The more I think about it, the Goldman report is probably a head fake. Seems like something the vampire squid would do. They’re probably rebranding to ‘Goldman Stacking Sats’ as we speak.

Goldman Sachs: In 2019, $2.8 billion in Bitcoin was sent to currency exchanges from criminal entities. Fun Fact: Goldman Sachs facilitated $6 billion in money laundering via 1MDB scandal between 2012-13. Double standard much?

Dave Hodgson, chief investment officer and managing director of NEM Ventures:

By considering it unviable for its investors, Goldman Sachs has risked causing its investors to miss out on one of the best performing asset classes in the past 100 years, never mind the last 10.

Ryan Selkis, the CEO of crypto research firm Messari

Fun fact, in just over a decade #bitcoin has 2.5x’d Goldman Sachs market cap. BTC’s volatility is a defensive weapon that has allowed it to hide in plain sight before slaying the vampire squid for good.

Related Story:  Bitcoin, the First-Born Crypto, is Highly Bullish (Bloomberg Report)

Image credit: Flickr    

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