David Solomon, incoming CEO at Goldman Sachs has revealed that he intends to put more Bitcoin and crypto services in the investment company's portfolio. Still and all, the Goldman Sachs 2018 mid-year economic outlook report alludes Bitcoin will go on moving down for an anticipatable future.
“Our view that cryptocurrencies would not retain value in their current incarnation remains intact and, in fact, has been borne out much sooner than we expected,” the team lead by chief investment officer Sharmin Mossavar-Rahmani said in the report.
The outlook report indicates that the price of Bitcoin has dropped 45 percent as per now this year.
"We expect further declines in the future given our view that these Cryptos don't fulfill any of the three traditional roles of a currency," Goldman Sachs revealed.
Furthermore, Goldman Sachs noted that they are a unit of measurement, a medium of exchange, nor a store of value. Cryptocurrencies delineate 0.3 percent of world Gross Domestic Product.
Mossavar-Rahmani and other crypto analysts had anticipated early this year in January that Cryptos wouldn't be able to keep their valuations over a long period of time.
Though pessimistic about the future of Bitcoin and its maniac adherents, the Goldman analysts de-emphasized interests that a crypto market crash would stumble into other equities markets, debating that Bitcoin and its comrades get a lot of media attention than what their valuations merit.
“Importantly, we continue to believe that such declines will not negatively impact the performance of broader financial assets because cryptocurrencies represent just 0.3% of world GDP as of mid-2018,” the analysts said. “In fact, we believe that they garner far more traditional media and social media attention than is warranted.”
Though prudent, Goldman Sachs' bearish opinion isn't shared by the company's fellow WallStreet compatriots. Last week, Intercontinental Exchange (ICE), the globe's top stock exchange, disclosed its showy plan to launch a new company whose primary mission is to set Bitcoin up as a mainstream financial asset - perhaps, in CEO Jeffrey Sprecher's own words, the "first worldwide currency."