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Analysts Strike at Goldman Sachs Over BTC Bashing

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Recently, it was reported that Goldman Sachs held a client call having to do with assets such as bitcoin and gold. The call – rather than praising both assets for their resilience and their ability to hedge wealth during times of economic strife – was used to hit these assets, particularly bitcoin, which members in the call said was “not an asset class.”

Goldman Sachs Is Eating Its Words

These words have come back to haunt Goldman, and they have seemingly angered many people in the crypto space. Traders, crypto experts and financial analysts alike all took their turns hitting back at the investment company, claiming that the company’s words do not reflect the changes or the benefits that have been added to bitcoin over the past several years.

Throughout the call, Goldman Sachs treated its viewers and listeners to a series of slides that discussed why bitcoin and crypto in general make poor investments. According to the company, bitcoin does not generate cash the way government bonds do. In addition, it does not gain value when exposed to global markets, and it is not diverse enough for traders to really benefit. The slides ended with a single comparison of bitcoin to the tulip craze in Europe in the 17th century, something we’ve all heard before.

Analysts hosting the call explained:

We believe that a security whose appreciation is primarily dependent on whether someone else is willing to pay a higher price for it is not a suitable investment for our clients.

Among some of Goldman’s biggest attackers is Meltem Demirors, chief strategy officer at Coinshares. In a recent interview, he points out that Goldman has been bearish on many big things – such as the Internet – and that it’s known for making incorrect calls about future endeavors and investments. He stated:

Goldman was bearish on the internet in 1994. Not every call is going to be the right one, and clearly there are many notable investors and institutions who are allocating to bitcoin… The world is quickly figuring out that the millions of active members of the crypto community and millions of eyeballs tracking crypto news are a good audience to engage for attention, and arguably, Goldman received a lot of attention for a rather mundane and otherwise uninteresting report with very vanilla takes… As the wealth of crypto holders and crypto companies grow, just like JP Morgan and so many others, Goldman will have to start courting these clients who have vastly different preferences and needs than their legacy clients. If it’s profitable, Goldman will inevitably get into the business.

Analysts Fight Back

Bill Baryhydt – CEO of Abra – was also quick to praise BTC and dismiss Goldman, explaining:

Every government-backed currency has failed. Goldman received millions from the Trouble Asset Relief Package [from the U.S. government]. They are part of the system.

Tags: bitcoin, Goldman Sachs, Meltem Demirors



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