First, Jamie Dimon of JP Morgan Chase says he regrets calling bitcoin a fraud. Now, legacy bank Goldman Sachs is formally recognizing how cryptocurrencies such as bitcoin could act as global money. 2018 might be shaping up to be the year bitcoin gets more mainstream than ever.
Goldman Sachs Considers Bitcoin as Money
Bitcoin as Money, a proprietary research paper published internally by Goldman Sachs, argues, “Our working assumption is that long-run cryptocurrency returns should be equal to (or slightly below) growth in global real output—a number in the low single digits.” Eventually, “digital currencies should be thought of as low/zero return or hedge-like assets, akin to gold or certain other metals,” they claim. As a money in the way most people understand it, Goldman is open to the idea “in theory.”
The US legacy bank of banks, Goldman Sachs has been around 150 years. It existed decades before the Federal Reserve, and it has withstood many financial fads. Goldman employees go on to run the world, occupying the highest offices in governments. When it speaks on a subject, markets listen.
Goldman researchers Zach Pandl and Charles Himmelberg explain how their findings reveal in “recent decades the US dollar has served its purpose relatively well,” however, “in those countries and corners of the financial system where the traditional services of money are inadequately supplied, Bitcoin (and cryptocurrencies more generally) may offer viable alternatives.” Use cases aplenty can be Read More Here