Goldman Sachs Considers Bitcoin to be the New Gold
Bitcoin has experienced a huge growth in 2017. Without a doubt, the cryptocurrency has numerous supporters, but there are also a lot of people who believe that this is not a trustworthy form of investment. Well, many banks have been in this latter category so far, but this no longer seems to be the case of Goldman Sachs.
Goldman Sachs has recently claimed that bitcoin could turn out to be an important asset. The big bank even claimed that bitcoin is the new gold and could be the premier store of value on the global financial market. These statements were actually made in a report sent by the bank to clients. The report was sent by Zach Pandl, a Goldman Sachs analyst.
Pandl said in the note sent to clients that the increase of the value of bitcoin, as well as the rapid growth of the cryptocurrency have also been associated with the fact that people's dissatisfaction with fiat money has also increased. Pandl stated that the current banking infrastructures have also caused dissatisfaction to people.
Pandl went on to say that in time, cryptocurrencies will mature and will become a major asset class, becoming even better than gold and other assets of this kind. However, this does not mean that Pandl only had great things to say about the cryptocurrency market.
In fact, he previously said that the market valuation of several cryptocurrencies is not justified, which means that the overall cryptocurrency market can be regarded to as a "classic speculative bubble."
Is bitcoin a progression from fiat money?
A theory that has been debated lately is whether bitcoin is the natural progression from fiat money or physical money. If this is what we consider to be true, then, the market value at least of bitcoin can be justified. This is what the CEO of Goldman Sachs, Lloyd Blankfein, previously said in an interview with CNBC.