Chief Investment Officer of Goldman Sachs Group’s Sharmin Mossavar-Rahmani believes Bitcoin’s volatility makes it to be not a real unit of value. Although, she assures that blockchain technology will continue its potentiality. Rahmani made the remarks during a briefing on the Goldman group’s 2021 outlook. She even compared the spike of cryptocurrency amid the GameStop stock market surge. Rahmani Remains Skeptic on Bitcoin’s Valuation Rahmani, head of the investment strategy group for Goldman Sach’s consumer and investment-management division, said: “Something with long-term volatility of 80% can’t be considered a medium of exchange. Just because everybody piles into an idea and talks it up doesn’t mean it’s a store of value.” Rahmani’s skepticism on Bitcoin’s valuation resembles that of the European Central Bank’s governing council member Gabriel Makhlouf. He recently warned the investors of Bitcoin that they should be prepared to lose all their money. The price of Bitcoin has exceeded almost $41,000 in early January. Since then the price of the leading cryptocurrency has dropped back to about $37,000. Rahmani also compared Bitcoin and blockchain technology, a ledger that records all the currency’s transactions. She said that blockchain technology could facilitate the smoother flow of global assets and will likely become part of the financial infrastructure. Global Banks Developing Cryptocurrency Products Despite this, the leading cryptocurrency is still advocated by high-profile investors. For instance, Paul Tudor Jones bought some Bitcoin as a hedge against the central bank and potential inflation. Both Mike Novogratz and Alan Howard have also invested hundreds of millions of dollars in Bitcoin and other digital currencies. Despite the executive at Goldman Sachs’s hesitance towards Bitcoin, leading global banks have taken into developing cryptocurrency products for clients. For instance, JPMorgan Chase & Co. even launched its own digital currency last year. Fidelity Investments too started a Bitcoin-only fund. Meanwhile, even Goldman Sachs had issued a request for information to at least one crypto custody player at the end of 2020.
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