Goldman Sachs launches attack on cryptocurrencies and sees no value in it

Once again, Goldman Sachs is questioning the value and utility of digital currencies, led by Bitcoin, and continues to launch its attacks on the high-risk sector and its investors despite the success of Bitcoin ETFs and the bull market.

Goldman Sachs doesn't believe in cryptocurrencies and says they're worthless

In a recent interview with the Wall Street Journal, Sharmin Mosaffar Rahmani, chief investment officer of Goldman Sachs, said that cryptocurrencies “have no value.” Goldman Sachs officials are still not convinced about investing in digital currencies and Bitcoin. Despite spot Bitcoin ETFs being approved in the US and Bitcoin hitting a new high.

Charmaine Mosaffar Rahmani revealed that the giant bank's customers, however, have not shown any interest in cryptocurrencies. Bull market Last. This is despite recent reports that Goldman Sachs hedge fund clients have shown increasing interest in cryptocurrency derivatives.

"We don't think it's an investment asset class. We don't believe in cryptocurrencies. At least you can hold and store physical gold. Whereas you can't "I can't do it with cryptocurrencies. If you can't assign a value, then how can you be bullish or bearish?" All crypto enthusiasts Cryptocurrency heralds the democratization of finance. But big decisions end up being made by a few people. »

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As a reminder, Goldman Sachs officially launched its own cryptocurrency trading desk in 2021. Although it is one step closer to industry adoption, it continues to attack the usefulness of cryptocurrencies and continues to question their value.

Goldman Sachs continues to take a tough stance on the cryptocurrency industry. Although successful Bitcoin ETF. But years are enough to change one's beliefs, as happened with BlackRock, which attacked Bitcoin and claimed that its clients were not interested in it three years ago.

In fact, Goldman Sachs' concerns may be reasonable, especially in light of the lack of clear laws that regulate the crypto industry and protect investors, customers, and users. Faced with the proliferation of hacking operations which damage the reputation of the sector and expose thousands, even millions of people, to the loss of their encrypted assets. Recent reports revealed that hackers seized $500 million worth of cryptocurrencies in the first quarter of this year alone.

Crypto Industry Leaders Open Fire on Sharmeen Mosaffar Rahmani

On the other hand, Sharmeen Mosaffar Rahmani's statements were disapproved and condemned by many leaders in the cryptocurrency industry. Those who commented on his statements on Twitter and other decentralized communication platforms as well. Some then called Charmaine's comments "detached from reality."

In an analytical article for Charmaine's interview, cryptocurrency investor Pompliano showed (Pompliano) He was disturbed by the statements of the head of Goldman Sachs. Noting that the value of the industry, which Charmaine considers worthless, is as high as $2.5 trillion and that tens of billions of dollars are invested in it each year by sophisticated institutional investors.

"Charmaine basically claims that she is smarter than everyone and that she is smarter than the market. Everyone must be wrong. It's a little strange to think about, but it's crazy to say it out loud to the Wall Street Journal."

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Pompliano continued:

"It would be cliché to say that you don't think the future of Bitcoin is bright. You can say that the assets may not be worth the value that people place on them today. But the claim that this $2.5 trillion industry is not an asset class is simply out of touch with reality."

Commenting on Charmaine's question about how to determine an upward or downward trajectory and that Bitcoin is "very volatile", Pompliano responded by saying that Bitcoin is up 800%, while the US dollar has fallen by 25% since 2020.

Finally, Charmaine Mosaffar Rahmani used an argument Illegal cryptocurrency transactions To hit the industry. However, illegal cryptocurrency transactions represent only 0.5% of the total volume.