A forthcoming report from the investment bank shows that cryptos have performed strongly this year compared with traditional assets.
The report opens with a discussion on whether crypto can be considered an institutional asset class by talking to several experts in crypto and finance. Michael Sonnenshein, CEO of Grayscale Investments — which holds more than 3% of Bitcoin’s total supply — was unsurprisingly an advocate for crypto, suggesting that investors were attracted to the scarcity of assets like Bitcoin as a hedge against inflation.
Galaxy Digital Holdings CEO Michael Novogratz and Goldman Sachs Co-head of Forex Strategy Zach Pandl were in agreement, while NYU Professor of Economics Nouriel Roubini argued that crypto couldn’t be considered an asset as it has no income, utility, or relationship with economic fundamentals.
The report goes on to present a range of data on cryptocurrencies and their performance. It shows that Bitcoin and Ether have performed strongly year-to-date compared with traditional assets, while other coins like XRP and Dogecoin have seen even larger rallies this year.
Goldman Sachs’ research shows that as of May 19, about 70% of Bitcoin and 85% of Ether was held in profit, but also demonstrates that these assets are far more volatile than the stock market.
Finally, Goldman Sachs explains how to buy and transfer Bitcoin and some of the cryptography behind Bitcoin transactions.
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