The recent price tumble has many questioning about the future of cryptocurrencies. But it seems Goldman Sachs has their mind cleared regarding the same. They have now officially added Bitcoin as an asset class and believe that this addition was inevitable. This new development has led to a great market sentiment and has also contributed to an almost 10% rise on Monday. We also saw that Twitter users were vibing hard with Goldman Sachs and appreciate their newfound assets.
"#Bitcoin is now considered an investable asset…" said Mathew McDermott, @GoldmanSachs global head of digital assets, in a new piece of research. "…it’s not often that we get to witness the emergence of a new asset class."https://t.co/lgpX4wkFxK
— Michael Saylor (@michael_saylor) May 24, 2021
Goldman Sachs on Bitcoin
They believe that BTC is an inevitable asset even though it is a little risky to invest in the same due to the adoption phase its currently in. Goldman also said that it is a digital gold. Even in the past, we saw officials saying that Bitcoin is a replacement for gold rather than fiat. According to Goldman Sachs, clients have also started to accept Bitcoin as an asset class and are diving into it even after knowing the risks.
But many people still question the future and credibility of Bitcoin as an asset. This is due to the huge volatility of the market and the way it loses and gains value. Well, I read an interesting tweet that made sense to me. It said that Bitcoin is the only free-market now; even stocks are volatile, but they are controlled by the government, and their volatility becomes invisible.
Is Bitcoin the future?
You may hear news from governments, institutions, and other investors cracking down on Bitcoin, but at the end of the day, everyone wants it. China has been spreading FUDs regarding its mining and crypto ban. But as the prices are dipping due to their news, investors from the country are buying in huge amounts of Bitcoin at a much cheaper rate. Like every bull run, I believe even this time; we are in the bear trap. This is the phase where the market dips for some time only to recover and grown 500% from thereon.
And those who sold or shorted the coin during this period get trapped and lose their money. Therefore, all the manipulation, News, FUDs are planned and are just external noise. If you as a person/investor believe in the idea of Bitcoin and its technology, then these things should be avoided at any cost by you.
What do you think about Goldman Sachs saying that Bitcoin is an asset class? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.