Goldman Sachs:"Bitcoin is not the new gold"

Did the large investment bank's statement affect the price of Bitcoin? Let's figure out
20 October 2017   884

Representatives of Goldman Sachs, one of the world's largest investment banks, are convinced that bitcoin is not new gold at all. This is reported by CNBC.

Representatives of the bank believe that precious metals still remain "the most important class of assets" for almost any investment portfolio and the best way to preserve the value.

The use of precious metals is not a historical accident – they are still the best long-term store of value out of the known elements.

Goldman Sachs

Despite the deflationary nature of bitcoin caused by the severe limitation of emissions and its noticeable growth in periods of geopolitical instability, Goldman Sachs is still confident that the crypto currency is much inferior to gold:

Gold wins out over cryptocurrencies in a majority of the key characteristics of money. 

Goldman Sachs

Moreover, according to investment bankers, crypto-currency wallets are vulnerable to hacking. The very same crypto-currencies, according to analysts, are subject to "significant regulatory risks". Also, digital currencies are characterized by infrastructure and network risks. As an example of such risks, Goldman Sachs named the recent hardfork of bitcoin, which resulted in a new crypto currency called Bitcoin Cash.

To other shortcomings of bitcoin Goldman Sachs attributed the permanent growth of commissions for transactions, the average size of which in mid-July reached a mark of $ 9.

Finally, representatives of the financial conglomerate stressed that "gold is beyond competition" and it does not yet have worthy alternatives. According to analysts, this noble metal has low volatility and a stable purchasing power.

Bitcoin Price Chart

As we all know, Bitcoin is very volatile and giant amount of factors can affect its price. So, let's check how this statement affected the price of "digital gold".

Bitcoin Price Chart
Bitcoin Price Chart

Don't be afraid of big spikes! If you look closely, you'll notice that price of Bitcoin is set around $5650, ±100$ in last 24h. At the moment of press, Bitcoin average price is $5650.13 (showing growth for 0.04% in 24h) with market cap almost of $94B. So, at the moment, big affect of Goldman's statement can't be seen on Bitcoin price chart. 

Goldman Sachs & JPMorgan to Invest $32M in Axoni

Well-known companies such as Andreessen Horowitz, Citi, JP Morgan, Wells Fargo, Y Combinator and Digital Currency Group also took part in the investment round
15 August 2018   354

Axoni blockchain start-up raised $ 32 million in the series B financing round, led by Goldman Sachs and Nyca Partners.

Well-known companies such as Andreessen Horowitz, Citi, JP Morgan, Wells Fargo, Y Combinator and Digital Currency Group also took part in the investment round. As a result of the campaign, the total volume of venture investments in Axoni was $ 55 million.

According to representatives of the New York company, the funds raised will be used to continue the development of data synchronization technology and the Ethereum-compatible language of the AxLang smart contracts. Also, the money will be spent on creating new products based on an audited distributed network called AxCore.

Axoni CEO Greg Svehi said that his startup is seeking to increase the number of companies using blockchain based solutions based on Axoni developments.

We are pleased to be part of Axoni’s journey since co-leading their Series A financing back in December 2016, and we are excited to see their progress made to date. The adoption of distributed ledger protocols in capital markets resembles the early days of adopting TCP/IP for distributed enterprise applications. We continue to be impressed with Axoni’s ability to facilitate such adoption by identifying use cases that could benefit from blockchain technology.

C. Thomas Richardson

Head of Market Structure and Electronic Trading Services, Wells Fargo Securities

In the spring of last year, the startup received $ 20 million from Citi, the banking giant, a year earlier - $ 18 million from a number of large financial institutions and venture investors.