Bitcoin has gained many polarising views from investors. On the one hand, a group of people says that it is the most attractive investment ever. And then, we have the CIO of Goldman Sachs saying that it is their least favorite investment. Well, I don’t doubt that Goldman Sachs is one of the banks who think that they are playing it safe, and maybe they are, but this data is really surprising.
The CIO of the firm Goldman Sachs released a list of their most liked and not so liked investments. They had a roundtable session where many CIOs from hedge funds and long-only firms joined. And among the least favorite investments were New IPOs and Bitcoin with negative sentiment of 25% and 35% respectively. Among the favorite investments, there is growth at 55% and value at 30%. Goldman Sachs still thinks that BTC is an asset class and the FOMO is one of the main reasons that institutions are investing in the same.
This data from the bank shows that not every bank has the same views nor do their clients. This is because the Bank of America released data that shows that long Bitcoin was one of the most traded.
What is the problem with Bitcoin?
One of the reasons that Bitcoin is looked down upon is volatility. The prices fluctuate so much that the firms are often very skeptical about investing in it. This could be one of the reasons that Bitcoin is not seen as a very attractive investment for many. But those who are okay with short-term ups and downs for solid long-term gains still look at it as an opportunity they wouldn’t want to miss on. It is up to the risk appetite and goal of investors that will make it a good or bad investment.
What are your thoughts on Bitcoin being the least favorite investment of Goldman Sachs? And do you think about Bitcoin the same way? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.