Bitcoin is one of the most popular cryptocurrencies out there, and it continues growing each year. The digital currency world has become popular for online transactions and enhanced security. However, some remain skeptical. Goldman Sachs recently held a briefing with investors where leaders discussed the crypto world with clients. The results, though, were not what crypto-enthusiasts were hoping for.
As new tech advances the crypto world, some believe Goldman Sachs is falling behind due to its rejection of Bitcoin. On the other hand, the bank remains firm in its decision. It's unclear if things will change in the future, but the bank listed reasons for its apprehension—and criticism followed.
The Initial Discussion
Last week, news started circulating that leaders from Goldman Sachs were going to discuss cryptocurrency in a briefing with investors and clients. The initial news sparked interest among followers of both the bank and Bitcoin—the primary focus of cryptocurrency.
Shortly after the briefing, however, documents leaked online that showed the coverage of Bitcoin. Crypto-proponents were disappointed to see the bank had no interest in the token or plans to invest or encourage clients to invest.
Goldman Sachs listed several reasons for its hesitation and disinterest. First, the bank stated that Bitcoin doesn't generate enough cash flow in the same way that bonds do. The other primary claim is that the cryptocurrency does not foster enough global economic growth[1] to be an asset. Goldman Sachs also listed the volatility, lack of hedging against inflation, and potential insecurity as detriments.
Illicit activity is a major concern from the bank. The general public has heard cases of cryptocurrency fostering ransomware breaches, money laundering, and illegal darknet use. With these reasons in the leaked documents, the bank didn't comment further.
The lack of investments and interest from Goldman
