So Goldman Sachs have a presentation titled:

"Cryptocurrencies Including Bitcoin Are Not an Asset Class"

Here’s why they’re wrong on that and so much more.

(1) First, cryptocurrencies are most certainly a new asset class. They’re the only know asset that can have a finite (capped) suppply, seperating it from precious metals like gold that are limited to a degree.

(2) They claim that the only reason people buy bitcoin is because they expect to sell it to another person at a higher price. You know, the same exact thing you expect every time you buy a stock, bond, property, etc.

(3) To them, Bitcoin’s volatility dismantles it’s ability to be an asset. Goldman Sachs...allow me to introduce you to the multi trillion dollar commodity, oil, which turned negative just a couple of weeks ago. Oh but that’s a market, right?

(4) They site that bitcoin doesn’t provide a yield like a bond. Gold and many other assets don’t provide a yield, or...were they referring to those lucrative negative yields? You know, the ones in Europe that penalize you for holding them?

(5) Supposedly they believe bitcoin hasn’t hedged against inflation. Whether directly correlated or not, bitcoin has absolutely hedged against inflation, and provided returns many times over against inflation.

(6) And to top it all off, they feel that, though traders are interested in buying/selling it in the short term, it negates it as a longterm investment. Kind of like how people rampantly traded tech companies that inevitably came to dominate equity markets?

(7) In conclusion, I’ll bet money they’re gonna be offering cryptocurrency investment services in the next three years. Let’s see if their actions match their words