Goldman Sachs says bitcoin is not a viable investment, and Grayscale buys twice as much bitcoin
Goldman Sachs named reasons not to invest in bitcoin
Goldman Sachs Investment Bank held an online conference for its customers, during which, among other things, they discussed cryptocurrencies.
According to the bank’s specialists, cryptocurrencies are not an asset class, since they do not create cash flows, do not contribute to GDP growth, and also do not provide an opportunity to diversify the portfolio due to unstable correlations. In addition, experts did not find a trend in digital currencies to reduce volatility or reasons to believe that they can act as a hedge against inflation.
Among the negative factors, bankers also attributed high volatility, the use of cryptocurrencies in illegal activities and their susceptibility to hacking and theft.
Bitcoin supporters have widely criticized Goldman Sachs for these claims. For instance, Dan Tapeiro, founder of D-TAP said 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 tweeted.
After halving, Grayscale fund has bought 1.5 times more BTC that there were mined
Grayscale Investments, an investment company, almost doubled Bitcoin purchases after the halving on May 11. Earlier, the fund acquired an average of 607 BTC per day, and after the event, increased volumes to 1,112 BTC.
Analyst Kevin Rook pointed out that the company, after the halving, bought 50% more bitcoins than there were mined.
“Grayscale’s Bitcoin Trust bought 18,910 Bitcoins since the halving.
Only 12,337 Bitcoins have been mined since the halving.
Wall Street wants Bitcoin, and they don’t care what Goldman Sachs has to say,” Rook wrote on Twitter.
Earlier, Grayscale Investments noted that the amount of funds under the compnay’s management reached $3.8 billion, out of which $3.3 billion are in bitcoin fund.
Peter Brandt: no indicator better than price
Famous trader Peter Brandt expressed the opinion that the best indicator of bitcoin is its price.
“Indicators are derivatives of price. Why study indicators when you ca study price. I trade price, so it is price I study,” Brandt wrote on Twitter.
He noted that over the past 8 years, he had seen only “a dozen days” on the BTC price chart when the indicators gave useful signals. A large amount of information viewed daily can only confuse a trader, Brandt said.