Coming every Sunday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more — a week on Cointelegraph in one link.
One of the world’s biggest investment banks caused a stink this week when it declared cryptocurrencies are not an asset class. In a leaked PowerPoint presentation, Goldman Sachs (NYSE:GS) warned Bitcoin doesn’t provide diversification benefits, dampen volatility in a portfolio or show evidence of hedging inflation. One damning line read: “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.” Goldman’s view is directly at odds with Michael Bloomberg, whose financial reform plan unequivocally called BTC an asset class. As you’d expect, the crypto community reacted furiously. D-TAP Capital founder Dan Tapeiro argued Goldman Sachs was simply worried about protecting revenues, as it doesn’t make fees when a client buys BTC. Tyler Winklevoss also criticized the quality of Goldman’s research, writing: “Crypto used to be where you ended up when you couldn’t make it on Wall Street [...] Today, Wall Street is where you end up when you can’t make it in crypto.”