Goldman Sachs Has Had a Mixed Relationship with BTC
Regarding cryptocurrencies, Goldman Sachs has been a very hit-and-miss company, often going back and forth between appreciating it and loathing it. Things took a particularly nasty and mixed turn last May when the company announced that it was going to offer a special seminar on several alternative assets, which included bitcoin.
However, those who had the time to take the class soon found out that bitcoin wasn’t much of a subject in the seminar and that the company primarily spent its time bashing the currency and talking about what a pointless asset it was. The company took a page from Warren Buffett’s book and announced during the virtual event:
A security whose appreciation is primarily depending on whether someone else is willing to pay a higher price for it is not a suitable investment.
Many analysts and industry experts took issue with the firm’s negative attitude towards the world’s number one cryptocurrency by market cap, though not long after the seminar took place, the company announced that it was potentially looking into building its own cryptocurrency, which suggested that perhaps the anger towards bitcoin was being born out of competition rather than legitimate hate.
Just last month, it was announced that an individual with a long history of working with Goldman Sachs would be joining the ranks of Galaxy Digital, which is owned and operated by Michael Novogratz, one of the biggest bitcoin advocates out there today. In a recent interview, Novogratz commented:
Goldman Sachs is going to have to get into crypto themselves… I see a relatively steady drive into the space, now. The macro backdrop is making the bitcoin and crypto story quite powerful.
Should Goldman Sachs decide to enter the bitcoin and cryptocurrency space, it would be one of the biggest companies to do so, though it would certainly not be the first. All last month, we were hit with news that MicroStrategy had purchased more than $400 million in BTC units as a means of hedging its wealth against inflation in the future.
The company’s CEO Michael Saylor commented that bitcoin was likely more sturdy and safer than both fiat currencies and gold alike.
Companies Want to Stay Ahead
Novogratz claims that several companies are likely getting involved with bitcoin given that competition is arising from nations such as China, which has already unveiled plans for a digital yuan. Enterprises and firms feel that the country is getting too powerful, and they want to ensure they have an edge.
In addition, he recently commented that the asset could find itself trading at $50,000 within the next few years, and many firms are looking to make a healthy profit.