Recently, Goldman Sachs claims that Bitcoin is not a wise investment as it is not an asset class. The statement from the financial giant receives a harsh reaction from the crypto community. Swissquote’s official responds to Goldman Sachs by comparing digital assets with traditional assets and proves how Bitcoin is an asset class having great potential.
The head of digital assets at crypto broker Swissquote, Chris Thomas, replies to Goldman Sachs by comparing Bitcoin with traditions entities. Thomas is not the first one to respond Financial giant, but he draws strong evidences to defy claim of Goldman Sachs. First, he compares both digital and traditional assets based on volatility:
“Absolutely, Bitcoin did fall 37% on March 12, 2020. And just one month later, oil markets plunged 333% in the space of 24 hours, nearly 10x a greater drop, touching a low of minus $40 per barrel at one point. In December 2019, Goldman Sachs predicted the average oil price through 2020 would be $63 per barrel.”
Bitcoin is Behind the Paradigm Shift
The paradigm shift is happening because of Bitcoin and other factors, but Goldman is not willing to accept this bare fact. Bitcoin is the emerging asset that will familiarize throughout the finance world. He said:
“The ultimate decision to buy (or sell) comes down to whether we believe the price will go higher (lower) and hence whether someone else is willing to pay a higher (lower) price for that investment…
Bitcoin, and select others, are the driving force behind the paradigm shift which is happening. Goldman Sachs is ignoring the strong foundations of this emerging asset class based on cryptographic principles and a world where many, if not all, assets will be tokenised, and trading them will be democratised.”
Those who oppose Bitcoin normally claim that it is used in illegal activities and also promote illegal actions. Thomas denies the claim of Bitcoin as a criminal tool by referring to Chainalysis’s report, which says that only 0.08% of crypto transactions originate from the darknet markets, and it makes only 1.1% of the total share of illegal activities.