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[Blockchain Today Correspondent Jang Seo-yeon] Wall Street investment bank Goldman Sachs has changed its stance once again, declaring that cryptocurrencies are not worth investing in.
In a report published earlier last week on its approach to cryptocurrency, Goldman Sachs argued that cryptocurrencies were not a promising investment, Cointelegraph reported.
The report concluded that Bitcoin is not a long-term store of value or an investable asset. This is contrary to the claims of the report published on May 21st. At the time, the report was generally positive about investing in Bitcoin. Even Matthew McDermott, global head of digital assets at Goldman Sachs, said, “Bitcoin is now considered an investable asset.”
In a new report, the bank’s investment strategy group said it wanted a safe response when it comes to cryptocurrencies. “We have refrained from repeating the positive and negative hype surrounding this ecosystem, as we do not want our customers to wander in a fluctuating environment, many of which make unsubstantiated claims,” the report said.
He went on to state that Bitcoin is not digital gold, but in any case argued that gold itself is not a reliable store of value. “The claim that Bitcoin and cryptocurrencies are digital versions of gold does not add any value to Bitcoin and other cryptocurrencies as gold itself is not a consistent or reliable value,” the report said.
The report also concludes that cryptocurrencies and blockchain technology are built on top of a trustworthy layer of trust, suggesting that the blockchain itself is unreliable.
However, within the bank, there are various opinions about their approach to cryptocurrency. Goldman Sachs led a $15 million investment round for Coin Metrics, a blockchain analytics company, in May.
It was also reported on the 14th that McDermott confirmed that the investment bank was expanding its crypto trading desk to include Ethereum options and futures.
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