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

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 more...