Goldman Sachs admits: we were wrong about Bitcoin

Goldman Sachs admits: we were wrong about Bitcoin - Goldman Sachs 1024x576Goldman Sachs, the leading American giant in investment banking, has announced that it will begin offering Bitcoin and other types of investments in digital assets. Who will be able to use them? As of the second quarter of 2021, all privately managed clients.

David Solomon, CEO of Goldman Sachs, said in an interview with CNBC that BTC is a digital asset more like gold than a payment network, and its price will continue to rise.

“I think bitcoin is an inevitable way to go to have the same, if not higher, market capitalization than that of gold. Now it's just a matter of time. In fact, people are starting to adopt it faster than we anticipated ”.

Goldman Sachs made history with its announcement and is likely taking its first step into the cryptocurrency market. The move will expose Bitcoin and other digital assets to its 3 million customers and beyond, and solidify Bitcoin's status as a store of value.

Goldman Sachs: never run out of BTC again

Additionally, Solomon added that as BTC adoption is moving at a faster pace than expected, its price will continue to rise.

“It's shocking to me how fast users are moving in this system and how short people are. Once you have decided that it is an asset class, if you are not long, you are short ”.

Goldman Sachs typically targets funds with portfolios of at least $ 25 million under management and now advises its clients to allocate 2-4% or 1-2% in BTC and other digital assets.

Interestingly, Goldman Sachs' decision comes just a year after the company declared BTC to be an invalid asset class in a client brief and advised its users to steer clear of it. In May 2020, Goldman Sachs said:

"We believe that a stock whose appreciation depends primarily on someone else being willing to pay a higher price for it is not a suitable investment for our clients."

Speaking of the development, CNBC reporters said that while large companies like Goldman Sachs have been resistant to Bitcoin due to its high volatility, customer demand has forced many to reconsider their positions.

Therefore, companies such as VISA have had to adapt to respond to the requests of their users, who were clamoring to be able to carry out purchases with BTC.

BTC above $ 60.000

Meanwhile, Bitcoin appears to be responding to the growing number of positive news from investments and developments in the cryptocurrency market.

The coin is trading at just over $ 59.000 at the time of writing, for the first time since March 21. Cryptocurrency analyst and trader Michael said basically, there is nothing to worry about #Bitcoin. According to him, the price of the digital currency will continue to rise and will soon set new records.