A growing number of Goldman Sachs have continued to question the claim that Bitcoin can act as a store of value. According to these executives, the notion that bitcoin is a store of value or a medium of exchange should be dismissed, however, they accept the fact that Blockchain technology is here to stay.
The latest in the long line of Goldman Sachs executives to dismiss the crypto asset is the head of the investment strategy group, Sharmin Mossavar-Rahmani, who says the volatility of Bitcoin proves “it is not a real unit of value.” According to her, an asset with a long-term volatility rate of 80% can not be considered as a medium of exchange.
Mossavar-Rahmani stated that Bitcoin will not become a store of value just because everybody is buying into its idea and talking it up as one. She however cited Blockchain as a technology that could facilitate smoother flow of global assets and predicted that it will become part of the financial infrastructure.
A top executive of the European Central Bank, Gabriel Makhlouf, also shares his consternation for Bitcoin when he warned investors to be prepared to lose all their money to the industry. Not only that, the leading crypto asset still has some level of doubters on Wall Street who thinks the asset is a bubble and a bad investment idea.
However, some of the institutions have begun to actively work on a crypto product for their teeming client base. Notable among them is JP Morgan which launched a digital currency and Fidelity Investments that started a Bitcoin Fund.
Some famous investors have also put their eggs in the crypto basket with Ray Dalio of Bridgewater Associates calling Bitcoin “one hell of an invention” and a gold-like asset. Mike Novogratz, and Micheal Saylor of Microstrategy has also invested hundreds of millions into the asset.