Goldman Sachs Recognizes Bitcoin as Real Money
In addition, the investment bank warns not to expect the return levels of 2017.
The investment colossus bank Goldman Sachs has stated that Bitcoin and other stable cryptocurrencies could succeed as a form of real money in developing economies.
Goldman Sachs strategists wrote in a recent report that in past decades the U.S dollar has served its purpose well. However, in some countries and corners of the financial system, the traditional services of money are inadequately supplied. There, Bitcoin could offer a viable alternative. Some examples are the countries such as Venezuela and Zimbabwe.
In addition, the investment bank warns not to expect the return levels of 2017. Their working assumption is that long-run returns of cryptocurrencies should be close to growth in the global real output. This means a number in low single digits. As a result, the cryptocurrencies should be considered as a low or zero return or like hedge assets, similar to gold.
Further, they told that the dollar’s widespread use outside the US and the full dollarization in some countries indicates there is a demand for an internationally accepted mean of exchange and store of value.
Goldman Sachs’ heavy influence
Goldman Sachs holds great influence in the world of politics and finance. The US legacy bank has been around 150 years as it existed decades before the Federal Reserve. When they express their opinion on a subject, the market listens. Note that The Independent and Al Jazeera refer to Goldman Sachs as the bank that controls the world. The Atlantic is referring to Goldman’s heavy influence in the US government as “The Quiet Coup.”
Bitcoin can be even more mainstream adopted in 2018
At first, JP Morgan Chase’ Jamie Dimon told he regrets calling Bitcoin a fraud. Currently, the legacy bank Goldman Sachs is officially recognizing how cryptocurrencies like Bitcoin could act as international money. 2018 could be the year Bitcoin gets more mainstream than ever.