Goldman Sachs: Crypto Not a Viable Investment, Blockchain May Become Obsolete

In its June cryptocurrency report entitled “Digital Assets: Beauty Is Not in the Eye of the Beholder,” Goldman Sachs’ Investment Strategy Group—which is responsible for the banking giant’s private wealth management—writes that cryptocurrencies are “not a viable investment” for its clients.      

The group’s analysts point out that greater regulatory oversight is the biggest risk faced by the cryptocurrency ecosystem.   

As reported by U.Today, Gary Gensler, the chair of the U.S. Securities and Exchange Commission, said that investors didn’t have full protections in the crypto market.  

In addition, Goldman notes tech advances could make blockchain “obsolete” even though it expects the technology to make enterprise operations more efficient and prevent the abuse of personal data.   

Finally, the bank also raised alarm over Bitcoin’s energy consumption, claiming that it could discourage broader adoption.

Meeting client demand

Despite a bearish research piece on digital assets, Goldman is further expanding its crypto trading desk by reportedly planning to add Ethereum futures and options.

According to Mathew McDermott, Goldman’s head of digital assets, there is still client demand for trading cryptocurrencies despite a recent rout:  

We’ve actually seen a lot of interest from clients who are eager to trade as they find these levels as a slightly more palatable entry point.   

Source link: cryptonews.net