The Goldman Sachs report appeared recently and although it is not yet available to the general public, it has already been shared on social networks by investors who have early access to these reports.

Alex Krueger, founder of asset management firm Aike Capital, shared part of the report, saying it should be fully available within the next few days.

Crypto, a new asset class – A fully comprehensive report from Goldman. pic.twitter.com/FP2sewJCTx

– Alex Kruger (@krugermacro) May 21, 2021

What does the Goldman Sachs report hold?

The report discusses the nature of cryptocurrencies as an asset class.

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The report gathered the opinions of many experts in the field, such as Michael Novogratz, CEO of Galaxy Digital, Zach Bundle of Global FX, Michael Gronager of Chainlaysis, and crypto critics such as Noriel. Robini”.

The report describes the most important characteristics of the leading cryptocurrencies and the usefulness of each one.

In this regard, for example, the bank explains that Bitcoin as a capital-cap currency, XRP as a real-time settlement system, Ethereum as a smart contract platform, BNB as an interest-bearing application token, and Polkadot as a blockchain with interoperability capabilities…

Additionally, providing each project with a unique feature allows for some segmentation and categorization into the target audience.

According to Goldman Sachs, the value of Bitcoin lies primarily in its use and acceptance.

He told Michael Novogratz that the massive influx of institutional capital is a testament to the attractiveness of cryptocurrencies and the maturity of the market.

Novogratz defends the nature of bitcoin as a good store of value because of the simple social consensus around the currency, noting in the report:

The world voted for it [مخزن جيد للقيمة].

Grayscale Investments CEO Michael Sonsheim supports Novogratz’s view.

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For him, bitcoin scarcity is a way to hedge against inflation and currency devaluation.

Goldman Sachs also shared a graph of the Bitcoin price evolution, showing similarities in behavior between 2013-2016 and 2017-2021.

For Alex Krueger, this is an optimistic point for those who believe in the cyclical behavior of markets and can be an excellent investment opportunity.

Throughout Bitcoin’s history, after each drop – no matter how significant – the retracement tends to reach all-time highs over time.

Goldman Sachs’ position shift:

The report represents a significant change in the position of Goldman Sachs, which had a presentation published last year that stated that “cryptocurrencies” including Bitcoin are not an asset class because they did not generate cash flows or profits through exposure to global economic growth, diversify profits, or protect of fluctuations, and therefore they did not recommend it to their clients, as their opinion at the time was:

Read:The Bitcoin balance on the Coinbase platform has decreased by 36% in the last two years…Details here

We believe that a security whose valuation depends primarily on whether someone else is willing to pay a higher price for it is not a suitable investment for our clients.

But with a rise of nearly 600% since then, it seems time to make some adjustments, and this report could be an excellent way to revisit old positions from one of the world’s leading financial institutions.

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