Despite recent hype, it doesn’t look like Goldman Sachs will be recommending Bitcoin to clients anytime soon. According to early reports, the global investment bank said that the cryptocurrency is “not an asset class” and “not a suitable investment.”
The news comes courtesy of Digital Currency Group founder and CEO Barry Silbert, who claimed via Twitter to have seen slides from the meeting due to be held this morning. Rather than celebrate the role of Bitcoin in an economy where mid-term high inflation is a given, the bank appears to have dismissed the cryptocurrency entirely.
The news of the meeting, reported by BeInCrypto, has had the cryptocurrency industry excited over recent days. Given the title of the presentation, “US Economic Outlook & Implications of Current Policies for Inflation, Gold, and Bitcoin”, it’s easy to see why. Hosted by executives at Investment Strategy Group and Goldman Sachs, the call is due to date place this morning at 10:00 EST.
Upon hearing that Goldman Sachs was making Bitcoin the subject of a client call directly relating to inflation, many industry observers jumped to the conclusion that the news could only be positive for Bitcoin and institutional adoption.
YouTuber Omar Bham (Crrrrypt0) commented on the client call:
“This is the most bullish thing I’ve seen in a while.”
However, Silbert’s revelation ahead of the meeting suggests that the bank is less interested in Bitcoin than the hype would indicate. The Digital Currency Group CEO claims one of the slides he has seen includes the following as justification for dismissing the digital currency:
“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.”
Silbert jokes that, based on the above, the bank should also cease trading equities.