Goldman Sachs unintentionally sparked a war with cryptocurrency evangelists – By Ryan Browne (CNBC) / May 28 2020
- “Cryptocurrencies including bitcoin are not an asset class,” Goldman Sachs declared in a slide deck released ahead of an investor call on Wednesday.
- Crypto enthusiasts had eagerly anticipated the Goldman call, with some assuming it might lay out a case for investing in bitcoin.
- Industry figures like the Winklevoss twins quickly took to Twitter to criticize the investment bank’s claims.
The U.S. bank’s consumer and investment management division released a slide deck ahead of an investor call Wednesday, examining the impact of the coronavirus outbreak on the U.S. economy. A sizable chunk of the presentation focused on bitcoin and other virtual currencies.
“Cryptocurrencies including bitcoin are not an asset class,” Goldman Sachs’ Investment Strategy Group wrote in the opening of one slide. The deck detailed several reasons why cryptocurrencies couldn’t be considered an asset class in their own right, claiming they don’t generate cash flow likes bonds or earnings through exposure to global economic growth.
“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,” the group wrote.