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Shocking Bitcoin News What Goldman Sachs told its customers about BTC 2020

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Upgrade-x.com brings you Shocking Bitcoin News from the Crypto World, Preventing investors from investing in crypto currencies?

Crypto Shocking News

Paul Tudor Jones made a ‘recent public stance on bitcoin has raised expectations that Goldman Sachs’ presentation to its customers would be favorable to cryptocurrencies. In the end, it wasn’t . Their conclusion was that “We do not recommend bitcoin for customer portfolios, although its variability can offer opportunities to investors who follow the trend.” Let’s see where they support it.

Their reference to cryptocurrencies begins on page 29, with the criteria that they believe a currency should have . To be a medium of exchange, to serve as a unit of measurement, to be considered a means of safeguarding value. As for the second, it is really difficult to say that in bitcoin we meet this criterion, due to its relatively high variability.

Means of exchange, though? Because it is not yet used in our daily micro-transactions? With gold can you buy bread from the oven or pants from the shops? Bitcoin is much faster than conventional currencies when it comes to remittances and much safer to move than gold.

But let’s say that this issue is controversial. But what is definitely not true is the storage of value . Why, they admit it themselves. Even in the dollar, we already know that it will lose its value due to 18% inflation in a decade that’s shocking Bitcoin news. Especially other currencies, where devaluation and high inflation are inherent. Isn’t Argentine peso an asset? Is the Turkish lira not an asset? These two currencies are currently worth less than bitcoin when it reached $ 20,000! And they are not the only ones.

Shocking Bitcoin News Bitcoin BTC Not an asset class

The most interesting is on the next page, starting with the title. He describes cryptocurrencies as “not an asset class”. Apparently they “forgot” that bitcoin had been officially declared as a commodity (such as crude oil or wheat) by the Commodity Futures Trading Commission, and it was as early as 2015 .

But let’s not stay there, let’s go straight to the arguments:

Shocking Bitcoin News Update

A) The inherent lack of cash flows in contrast to bonds. But currencies have no cash flow. Indeed, bitcoin and gold do not enjoy interest. They have no interest, because they should not. It’s money, money has no interest. If I have a kilo of gold, after 10 years it will be a kilo of gold. If I have 1 million euros in banknotes, I will have the same package later. If I put the same amount in the bank, I have no money. I have deposits. As much as I lend to a state, I will have bonds. If I put my money in the stock market, I will not have money but shares.

With bitcoin, as with gold, you don’t make money from interest, dividends or coupons. However, if we go back to 1971, where we had the beginning of free fluctuations in currency exchange rates, the average annual return on gold was 7.5%. For bitcoin, we don’t need to say anything other than that it was the most profitable investment title in a decade. The world champion. What can interest do to him? Finally, what cash flows are we talking about in bonds? Even before the endless outflow of liquidity from the Central Banks, almost 1/3 of government bonds had a negative interest rate! 

 

B) Its inability to make a profit through exposure to global economic growth. But isn’t the same true of gold? How do the dollar or the euro increase their value since the rise in global GDP?

 

C) They do not provide consistent differentiated benefits due to volatile correlation. Here we probably need a dictionary to explain what they mean. If there is an unstable correlation, doesn’t that mean differentiation? No stock market value has a stable negative correlation with, for example, S&P. None. Even gold in times of crisis does not follow an autonomous course in relation to stocks. The fact that in some cases it is synchronized with the rest, does not deprive him of his status as an unrelated asset, as he does not have a close relationship for the longest time.

 

D) The issue of high variability . The cryptocurrency market has a clear specificity compared to traditional markets. It never closes. The crypto trades 24 hours a day, 7 days a week. There is no one to download the switch. There are no limit up or limit down. They have the ability to go as high as they want and retreat as long as the market decides. Nobody else. 

 

The maximum that S&P can drop is 20%. To protect investors, they can even close the stock market. We are not just talking about the humble Athens Stock Exchange, when after the imposition of capital controls it remained closed for months. The entire Wall Street did not open for a week after the attack on the Twin Towers. So yes, there is room for unrest. However, the price of bitcoin has risen entirely on its own. He did not receive trillions of dollars in guarantees just to survive. And that, at least for those who believe in the free market, should be appreciated.

 

If bitcoin is accused of falling 37% in one day at the height of its fear of the effects of the pandemic, then what should they say about oil, which was found to be trading at -40 dollars in a calmer period?

 

E) There is no evidence that it is compensation for inflation . Here we could really write endless arguments about how weak this view is, but we will be content with placing the Wall Street legend, Paul Tudor Jones. In a note to his shareholders, he argued that this was precisely the reason why he chose to include bitcoin in his portfolio .

Here are the FAQ’S

In order not to take all the other arguments one by one, we go straight to two points that “caught the eye”. They argued that cryptocurrencies as a whole are not a limited resource, citing forks . The argument is of the same value, as if they claim that if we add the metals that exist in a mine, gold ceases to be rare! Forks are different currencies.

 

The presenters where they escaped beyond all bounds, is when they came to compare bitcoin with the tulips of 1634! Flowers with technological innovation. Even Jamie Dimon , CEO of JP Morgan, two years ago who was still extremely negative about cryptocurrencies, said publicly that he regretted making similar allegations.

 

How is it possible to consider a bubble something that went up in 2011, in 2013, in 2017? Bubbles don’t do anything like bitcoin. They do not fall and rise again. The bubbles burst because people lose hope, they get frustrated. Because the weaknesses came to light. Investors, at the end of the journey, realized that they had high expectations that were refuted. Just the opposite happens in bitcoin.

 

In conclusion, they report that the most invested asset in the last decade is not suitable for their customers. They had the same opinion 3 or 5 or 10 years ago. Bitcoin denied them even before Wall Street discovered it. Why not deny them again, when conditions have become much more favorable today?

 

Conclusion

Goldman Sachs’ presentation, was shocking bitcoin news in our view, was very disappointing. Not because it was negative about bitcoin, nor because it was one-sided & biased. We did not expect so much labor. It could have been 5 or more years ago. Not today, when people are informed. If the whole of Goldman Sachs uses such cheap arguments for bitcoin, it reveals a lot.

Today, we know that money laundering authorities consider large banks such as HSBC and Deutsche Bank to be responsible . How 99% is made in dollars. How else is it to hack scary exchanges and another problem to have bitcoin. It’s like stealing a bank or someone’s wallet and thinking the euro is a problem. That because some cryptocurrencies worked as Ponzi systems does not mean that everything is suspicious. If so, Nasdaq should not have existed because of the Madoff scandal.

And yet. They mention all this in their presentation!

Perhaps the main methodological error is that they put bitcoin in the same basket as all cryptocurrencies. No one with basic knowledge of the field is going to make this fundamental mistake . Maybe that’s why the participants talked about bitcoin for only about five minutes at the end, without accepting any questions.

What remains positive is that it has been revealed who is responsible for the presentation: its customers themselves have pressured it to explain to them what is happening with bitcoin and whether it can be used as compensation for inflation. It is important to note that discussions about bitcoin and cryptocurrencies have now reached the top levels of investment banking.

If bitcoin weren’t important, they wouldn’t care.

 

What are your opinions on the Goldman Sachs story, we at upgrade-x would love to hear from you.

 

Please Leave a comment below.

 

Check out some more exlusive news, Blockchain updates and the very latest Information at your finger tips

goldman sachs image upgradex

Upgrade-x.com brings you Shocking Crypto News from the Crypto World, What arguments did the well-known company use to prevent investors from investing in cryptocurrencies? The opposite view, the… tulips and the conclusions.

Shockig Crypto News Paul Tudor Jones ‘recent public stance on bitcoin has raised expectations that Goldman Sachs’ presentation to its customers would be favorable to cryptocurrencies. In the end, it wasn’t . Their conclusion was that “We do not recommend bitcoin for customer portfolios, although its variability can offer opportunities to investors who follow the trend.” Let’s see where they support it.

Their reference to cryptocurrencies begins on page 29, with the criteria that they believe a currency should have . To be a medium of exchange, to serve as a unit of measurement, to be considered a means of safeguarding value. As for the second, it is really difficult to say that in bitcoin we meet this criterion, due to its relatively high variability.

Means of exchange, though? Because it is not yet used in our daily micro-transactions? With gold can you buy bread from the oven or pants from the shops? Bitcoin is much faster than conventional currencies when it comes to remittances and much safer to move than gold.

But let’s say that this issue is controversial. But what is definitely not true is the storage of value . Why, they admit it themselves. Even in the dollar, we already know that it will lose its value due to 18% inflation in a decade. Especially other currencies, where devaluation and high inflation are inherent. Isn’t Argentine peso an asset? Is the Turkish lira not an asset? These two currencies are currently worth less than bitcoin when it reached $ 20,000! And they are not the only ones.

Bitcoin BTC Not an asset class

The most interesting is on the next page, starting with the title. He describes cryptocurrencies as “not an asset class”. Apparently they “forgot” that bitcoin had been officially declared as a commodity (such as crude oil or wheat) by the Commodity Futures Trading Commission, as early as 2015 .

But let’s not stay there, let’s go straight to the arguments:

A) The inherent lack of cash flows in contrast to bonds. But currencies have no cash flow. Indeed, bitcoin and gold do not enjoy interest. They have no interest, because they should not. It’s money, money has no interest. If I have a kilo of gold, after 10 years it will be a kilo of gold. If I have 1 million euros in banknotes, I will have the same package later. If I put the same amount in the bank, I have no money. I have deposits. As much as I lend to a state, I will have bonds. If I put my money in the stock market, I will not have money but shares.

With bitcoin, as with gold, you don’t make money from interest, dividends or coupons. However, if we go back to 1971, where we had the beginning of free fluctuations in currency exchange rates, the average annual return on gold was 7.5%. For bitcoin, we don’t need to say anything other than that it was the most profitable investment title in a decade. The world champion. What can interest do to him? Finally, what cash flows are we talking about in bonds? Even before the endless outflow of liquidity from the Central Banks, almost 1/3 of government bonds had a negative interest rate! 

B) Its inability to make a profit through exposure to global economic growth. But isn’t the same true of gold? How do the dollar or the euro increase their value since the rise in global GDP?

C) They do not provide consistent differentiated benefits due to volatile correlation. Here we probably need a dictionary to explain what they mean. If there is an unstable correlation, doesn’t that mean differentiation? No stock market value has a stable negative correlation with, for example, S&P. None. Even gold in times of crisis does not follow an autonomous course in relation to stocks. The fact that in some cases it is synchronized with the rest, does not deprive him of his status as an unrelated asset, as he does not have a close relationship for the longest time.

D) The issue of high variability . The cryptocurrency market has a clear specificity compared to traditional markets. It never closes. The crypto trades 24 hours a day, 7 days a week. There is no one to download the switch. There are no limit up or limit down. They have the ability to go as high as they want and retreat as long as the market decides. Nobody else. 

The maximum that S&P can drop is 20%. To protect investors, they can even close the stock market. We are not just talking about the humble Athens Stock Exchange, when after the imposition of capital controls it remained closed for months. The entire Wall Street did not open for a week after the attack on the Twin Towers. So yes, there is room for unrest. However, the price of bitcoin has risen entirely on its own. He did not receive trillions of dollars in guarantees just to survive. And that, at least for those who believe in the free market, should be appreciated.

If bitcoin is accused of falling 37% in one day at the height of its fear of the effects of the pandemic, then what should they say about oil, which was found to be trading at -40 dollars in a calmer period?

E) There is no evidence that it is compensation for inflation . Here we could really write endless arguments about how weak this view is, but we will be content with placing the Wall Street legend, Paul Tudor Jones. In a note to his shareholders, he argued that this was precisely the reason why he chose to include bitcoin in his portfolio .

Here are the FAQ’S

In order not to take all the other arguments one by one, we go straight to two points that “caught the eye”. They argued that cryptocurrencies as a whole are not a limited resource, citing forks . The argument is of the same value, as if they claim that if we add the metals that exist in a mine, gold ceases to be rare! Forks are different currencies.

The presenters where they escaped beyond all bounds, is when they came to compare bitcoin with the tulips of 1634! Flowers with technological innovation. Even Jamie Dimon , CEO of JP Morgan, two years ago who was still extremely negative about cryptocurrencies, said publicly that he regretted making similar allegations.

How is it possible to consider a bubble something that went up in 2011, in 2013, in 2017? Bubbles don’t do anything like bitcoin. They do not fall and rise again. The bubbles burst because people lose hope, they get frustrated. Because the weaknesses came to light. Investors, at the end of the journey, realized that they had high expectations that were refuted. Just the opposite happens in bitcoin.

In conclusion, they report that the most invested asset in the last decade is not suitable for their customers. They had the same opinion 3 or 5 or 10 years ago. Bitcoin denied them even before Wall Street discovered it. Why not deny them again, when conditions have become much more favorable today?

Conclusion

Goldman Sachs’ presentation, in our view, was very disappointing. Not because it was negative about bitcoin, nor because it was one-sided & biased. We did not expect so much labor. It could have been 5 or more years ago. Not today, when people are informed. If the whole of Goldman Sachs uses such cheap arguments for bitcoin, it reveals a lot.

Today, we know that money laundering authorities consider large banks such as HSBC and Deutsche Bank to be responsible . How 99% is made in dollars. How else is it to hack scary exchanges and another problem to have bitcoin. It’s like stealing a bank or someone’s wallet and thinking the euro is a problem. That because some cryptocurrencies worked as Ponzi systems does not mean that everything is suspicious. If so, Nasdaq should not have existed because of the Madoff scandal.

And yet. They mention all this in their presentation!

Perhaps the main methodological error is that they put bitcoin in the same basket as all cryptocurrencies. No one with basic knowledge of the field is going to make this fundamental mistake . Maybe that’s why the participants talked about bitcoin for only about five minutes at the end, without accepting any questions.

What remains positive is that it has been revealed who is responsible for the presentation: its customers themselves have pressured it to explain to them what is happening with bitcoin and whether it can be used as compensation for inflation. It is important to note that discussions about bitcoin and cryptocurrencies have now reached the top levels of investment banking.

If bitcoin weren’t important, they wouldn’t care.

goldman sachs image upgradex

Upgrade-x.com brings you the latest news from the Crypto World, What arguments did the well-known company use to prevent investors from investing in cryptocurrencies? The opposite view, the… tulips and the conclusions.

Paul Tudor Jones ‘recent public stance on bitcoin has raised expectations that Goldman Sachs’ presentation to its customers would be favorable to cryptocurrencies. In the end, it wasn’t . Their conclusion was that “We do not recommend bitcoin for customer portfolios, although its variability can offer opportunities to investors who follow the trend.” Let’s see where they support it.

Their reference to cryptocurrencies begins on page 29, with the criteria that they believe a currency should have . To be a medium of exchange, to serve as a unit of measurement, to be considered a means of safeguarding value. As for the second, it is really difficult to say that in bitcoin we meet this criterion, due to its relatively high variability.

Means of exchange, though? Because it is not yet used in our daily micro-transactions? With gold can you buy bread from the oven or pants from the shops? Bitcoin is much faster than conventional currencies when it comes to remittances and much safer to move than gold.

But let’s say that this issue is controversial. But what is definitely not true is the storage of value . Why, they admit it themselves. Even in the dollar, we already know that it will lose its value due to 18% inflation in a decade. Especially other currencies, where devaluation and high inflation are inherent. Isn’t Argentine peso an asset? Is the Turkish lira not an asset? These two currencies are currently worth less than bitcoin when it reached $ 20,000! And they are not the only ones.

Bitcoin BTC Not an asset class

The most interesting is on the next page, starting with the title. He describes cryptocurrencies as “not an asset class”. Apparently they “forgot” that bitcoin had been officially declared as a commodity (such as crude oil or wheat) by the Commodity Futures Trading Commission, as early as 2015 .

But let’s not stay there, let’s go straight to the arguments:

A) The inherent lack of cash flows in contrast to bonds. But currencies have no cash flow. Indeed, bitcoin and gold do not enjoy interest. They have no interest, because they should not. It’s money, money has no interest. If I have a kilo of gold, after 10 years it will be a kilo of gold. If I have 1 million euros in banknotes, I will have the same package later. If I put the same amount in the bank, I have no money. I have deposits. As much as I lend to a state, I will have bonds. If I put my money in the stock market, I will not have money but shares.

With bitcoin, as with gold, you don’t make money from interest, dividends or coupons. However, if we go back to 1971, where we had the beginning of free fluctuations in currency exchange rates, the average annual return on gold was 7.5%. For bitcoin, we don’t need to say anything other than that it was the most profitable investment title in a decade. The world champion. What can interest do to him? Finally, what cash flows are we talking about in bonds? Even before the endless outflow of liquidity from the Central Banks, almost 1/3 of government bonds had a negative interest rate! 

B) Its inability to make a profit through exposure to global economic growth. But isn’t the same true of gold? How do the dollar or the euro increase their value since the rise in global GDP?

C) They do not provide consistent differentiated benefits due to volatile correlation. Here we probably need a dictionary to explain what they mean. If there is an unstable correlation, doesn’t that mean differentiation? No stock market value has a stable negative correlation with, for example, S&P. None. Even gold in times of crisis does not follow an autonomous course in relation to stocks. The fact that in some cases it is synchronized with the rest, does not deprive him of his status as an unrelated asset, as he does not have a close relationship for the longest time.

D) The issue of high variability . The cryptocurrency market has a clear specificity compared to traditional markets. It never closes. The crypto trades 24 hours a day, 7 days a week. There is no one to download the switch. There are no limit up or limit down. They have the ability to go as high as they want and retreat as long as the market decides. Nobody else. 

The maximum that S&P can drop is 20%. To protect investors, they can even close the stock market. We are not just talking about the humble Athens Stock Exchange, when after the imposition of capital controls it remained closed for months. The entire Wall Street did not open for a week after the attack on the Twin Towers. So yes, there is room for unrest. However, the price of bitcoin has risen entirely on its own. He did not receive trillions of dollars in guarantees just to survive. And that, at least for those who believe in the free market, should be appreciated.

If bitcoin is accused of falling 37% in one day at the height of its fear of the effects of the pandemic, then what should they say about oil, which was found to be trading at -40 dollars in a calmer period?

E) There is no evidence that it is compensation for inflation . Here we could really write endless arguments about how weak this view is, but we will be content with placing the Wall Street legend, Paul Tudor Jones. In a note to his shareholders, he argued that this was precisely the reason why he chose to include bitcoin in his portfolio .

Here are the FAQ’S

In order not to take all the other arguments one by one, we go straight to two points that “caught the eye”. They argued that cryptocurrencies as a whole are not a limited resource, citing forks . The argument is of the same value, as if they claim that if we add the metals that exist in a mine, gold ceases to be rare! Forks are different currencies.

The presenters where they escaped beyond all bounds, is when they came to compare bitcoin with the tulips of 1634! Flowers with technological innovation. Even Jamie Dimon , CEO of JP Morgan, two years ago who was still extremely negative about cryptocurrencies, said publicly that he regretted making similar allegations.

How is it possible to consider a bubble something that went up in 2011, in 2013, in 2017? Bubbles don’t do anything like bitcoin. They do not fall and rise again. The bubbles burst because people lose hope, they get frustrated. Because the weaknesses came to light. Investors, at the end of the journey, realized that they had high expectations that were refuted. Just the opposite happens in bitcoin.

In conclusion, they report that the most invested asset in the last decade is not suitable for their customers. They had the same opinion 3 or 5 or 10 years ago. Bitcoin denied them even before Wall Street discovered it. Why not deny them again, when conditions have become much more favorable today?

Conclusion

Goldman Sachs’ presentation, in our view, was very disappointing. Not because it was negative about bitcoin, nor because it was one-sided & biased. We did not expect so much labor. It could have been 5 or more years ago. Not today, when people are informed. If the whole of Goldman Sachs uses such cheap arguments for bitcoin, it reveals a lot.

Today, we know that money laundering authorities consider large banks such as HSBC and Deutsche Bank to be responsible . How 99% is made in dollars. How else is it to hack scary exchanges and another problem to have bitcoin. It’s like stealing a bank or someone’s wallet and thinking the euro is a problem. That because some cryptocurrencies worked as Ponzi systems does not mean that everything is suspicious. If so, Nasdaq should not have existed because of the Madoff scandal.

And yet. They mention all this in their presentation!

Perhaps the main methodological error is that they put bitcoin in the same basket as all cryptocurrencies. No one with basic knowledge of the field is going to make this fundamental mistake . Maybe that’s why the participants talked about bitcoin for only about five minutes at the end, without accepting any questions.

What remains positive is that it has been revealed who is responsible for the presentation: its customers themselves have pressured it to explain to them what is happening with bitcoin and whether it can be used as compensation for inflation. It is important to note that discussions about bitcoin and cryptocurrencies have now reached the top levels of investment banking.

If bitcoin weren’t important, they wouldn’t care.

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