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   632

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. 

Circle to See Crypto Demand from Investors

As the company's CEO Jeremy Allair said, Circle also recorded a x15 increase in the number of transactions compared to the same period last year
26 June 2018   288

In May, the crypto-currency blockchain start-up Circle attracted 30% more institutional investors than in April. The company's performance has increased despite the fact that the rate of bitcoin for the same period fell by about 20%. This is reported by CNBC.

As the company's CEO Jeremy Allair said, Circle also recorded a x15 increase in the number of transactions compared to the same period last year.

According to him, starting from this week all trading operations on the platform will be automated.

Major institutional investors don't go through a telephone broker. They go through an electronic interface. We're maturing this into a more traditional product; it's much faster and a more flexible way to trade.
 

Jeremy Claire 

Founder and CEO, Circle

We note that the monthly trading on the platform exceeds $ 2 billion, while the minimum amount of the deal is at least $ 250,000.