Bitcoin Too Volatile to be ‘Medium of Exchange,’ Goldman Sachs Says

SourceNewsweek
SectorFinancial Markets
CountryMiddle east

New York investment bank Goldman Sachs says Bitcoin's wild price swings show that it's not a store of value, echoing earlier comments by a British governmental watchdog and the European Central Bank that investors should be prepared to lose everything they put into the cryptocurrency."Something with a long-term volatility of 80% can't be considered a medium of exchange," Sharmin Mossavar-Rahmani, head of consumer and investment management at Goldman Sachs, said in remarks at a recent conference reported by Bloomberg. "Just because everybody piles into an idea and talks it up doesn't mean it's a store of value."To cite an extreme example, Bitcoin's price in July 2010 increased 1000% in five days, rising from $0.008 to $0.08. The cryptocurrency recently changed hands at $43,345.02. On Friday morning, Bitcoin was valued at $38,041.97, the Chicago Mercantile Exchange reported.Signs calling for more relief, a second Paycheck Protection Program and support from elected officials are setup as part of a campaign by Goldman Sachs near the U.S.

Capitol in Washington, D.C. on Jan. 5, 2021. Photo by ANDREW CABALLERO-REYNOLDS/AFP via Getty Images A JP Morgan analyst believes Bitcoin could go still higher. However, Blockchain, an unalterable and unbreakable record of transactions backing the crypto-currency, is ...read more...