The document titled “(Un)Steady as She Goes” was sent out by the famous American financial corp to warn the investors about the grim future awaiting cryptocurrencies. Reportedly, it was sent out to the wealthiest clients of The Firm to round up the events of the last 12 month surrounding Bitcoin and other prominent coins.
The paper was comprised by Sharmin Mossavar-Rahmani and Brett Nelson, both of whom are senior officials at the Investment Strategy Group Goldman Sachs. While the fearmongering and naysaying are ripe throughout the document, there are several good points to consider. While they admit, that technology behind the crytpocurrencies, namely blockchain, is valuable and useful for the future development in different spheres, they go to say that the craze around the whole topic of crypto is overrated and will blow over like any other flight of fancy in the past has done.
As usual with crypto fearmongering, there is a comparison with Dutch “Tulip mania” which we've already seen done a thousand times. There is also a point made about “Stock bubbles” for companies who announced some type of affiliation with blockchain and cryptocurrencies. The Long Blockhain (formerly a Long Island Ice Tea company) has been on the news because of that and has seen their share price rise rapidly. The same goes for the former sport bra company now proudly presented as the Crypto Company. There is no guarantee, that such kind of buff will survive the test of time, the authors point out.
And their main gripe is, actually, not the crypto as a whole, but Bitcoin in particular, because while the advantages of cryptocurrency are apparent, such as transparency and traceability, ease of execution globally, safety of ownership. But Bitcoin doesn't provide anything from this list, on the contrary, the rising TX fees, long settlements, and hackers' recent interest all really contribute to the scepticism, expressed by Mossavar-Rahmani and Nelson.