From Cointelegraph
White shoe investment bank Goldman Sachs has admitted that Bitcoin and other digital currencies could succeed as real money in developing economies. Goldman strategists wrote in a recent report:Read more: https://cointelegraph.com/news/goldman-sachs-admits-bitcoin-is-real-money-cites-use-cases-in-developing-world“In recent decades the U.S. dollar has served its purpose relatively well. [But] in those countries and corners of the financial system where the traditional services of money are inadequately supplied, Bitcoin (and cryptocurrencies more generally) may offer viable alternatives.”
Nonetheless, the investment bank warns against expecting 2017-level returns:
“Our working assumption is that long-run cryptocurrency returns should be equal to (or slightly below) growth in global real output—a number in the low single digits. Thus, digital currencies should be thought of as low/zero return or hedge-like assets, akin to gold or certain other metals.”
Changing tides
This is a remarkable change of tune from the skepticism with which big banks and “mainstream” investors have generally treated digital currency. JPMorgan Chase CEO Jamie Dimon famously called Bitcoin a fraud last year, while legendary billionaire investor Warren Buffett insists that Bitcoin isn’t money and people should stay away. Likewise, hedge fund magnate Ray Dalio dismisses Bitcoin as a bubble.
I have absolutely no proof of collusion but have noticed lately there seem to be days when there is a concentrated effort by the US financial media to spread FUD and then other days to tell stories of amazing gains. The first company that comes to mind when I think of who could wield that much power to sway markets like this I think Goldman Sachs. It feels lately like Wall Street is playing all kinds of games with the price.
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