Goldman Sachs: cryptocurrencies cannot be classified as assets

One of the largest investment banks in the world, Goldman Sachs, has identified several reasons why cryptocurrencies cannot be classified as assets.

So, in the framework of the conference with partners, which took place on Wednesday online, a presentation was presented to the participants, on one of the slides of which several reasons were presented why digital assets cannot be assigned to a particular class. Barry Silbert, head of Digital Currency Group, was the first to show the image.

In particular, the slide contains several statements:

• Do not generate cash flow, unlike bonds
• Not profitable due to global economic growth
• Do not provide continuous benefit diversification due to dependency instability
• They do not depreciate volatility, since the historical volatility of the instrument is 76% (on March 12, 2020, the price of bitcoin per day fell by 37%)
• Do not reduce inflation risks

“We believe that an instrument whose value mainly depends on whether someone is willing to pay a high price for it is not a suitable investment for our clients,” Goldman Sachs concludes, emphasizing that although hedge funds may Considering cryptocurrencies attractive due to high volatility, this approach should not be the basis for optimal investor behavior.