Meeting Ends | Goldman Sachs Denies Bitcoin as an Asset Class, Industry Insiders Disagree

The investor conference held by Goldman Sachs has officially concluded. Initially expected to express a positive view on Bitcoin, the investment firm still appears to hold a negative stance towards Bitcoin and other cryptocurrencies. They even criticized Bitcoin as not being an asset class, sparking backlash from many prominent industry figures.

Bitcoin in Goldman Sachs Conference Call

According to previous reports, Goldman Sachs held a conference call on May 27th titled "US Economic Outlook & Current Policies: Impact on Inflation, Gold, and Bitcoin." The conference not only focused on macroeconomic trends and their impact on financial markets but also included Bitcoin as a core topic.

Unfortunately, when Goldman's presentation leaked on social media, the fairy tale narrative in the cryptocurrency community seemed to shatter. The presentation stated that cryptocurrencies, including Bitcoin, can't even be considered an asset class as they do not provide cash flow like bonds, cannot generate revenue through global economic growth, foster Ponzi schemes and money laundering, and do not offer inflation hedging capabilities like gold. Goldman concluded in the presentation:

"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."

Out of Goldman's 35 slides, 7 mentioned Bitcoin. However, blockchain media Coindesk pointed out that the discussion related to Bitcoin during the conference lasted only about five minutes, which fell far short of industry expectations.

Industry Discontent

Many industry professionals are quite discontent with Goldman's viewpoint. Ryan Watkins, an analyst from cryptocurrency data analysis platform Messari, stated that Goldman's criticism lacks professionalism, akin to summarizing mainstream news right after reading it. According to Coindesk, two Goldman speakers at the conference referred to Bitcoin forks, which are among the top six by market value, as "almost entirely identical copies," and based on this, judged that cryptocurrencies lack scarcity.

On the other hand, Kevin Kelly, co-founder of Delphi Digital and former Bloomberg stock analyst, publicly commented after reviewing Goldman's presentation:

"Some might say Bitcoin has no backing and liken it to a popular game, but they overlook the subjective value that this novel asset provides. ... Bitcoin's current value is supported by 'demand for a non-sovereign speculative asset,' which could potentially turn it into one of the most valuable safe havens in the world."

Regarding Goldman's criticism of Bitcoin fueling global criminal activities, Tyler Winklevoss, co-founder of Gemini Exchange, tweeted:

"Goldman: In 2019, $2.8 billion of Bitcoin moved from criminal addresses to exchanges

Interesting fact: Goldman facilitated $6 billion in money laundering activities during the 2012-13 '1MDB scandal.'

Double standard?"

Goldman Sachs: In 2019, $2.8 billion in Bitcoin was sent to currency exchanges from criminal entities.

Fun Fact: Goldman Sachs facilitated $6 billion in money laundering via 1MDB scandal between 2012-13.

Double standard much?

— Tyler Winklevoss (@tyler) May 27, 2020

When a reporter from Fortune magazine contacted a Goldman spokesperson to inquire about these criticisms, the spokesperson declined to comment and stated: "I'm not sure there's anything further to add."