One of the major banks in the United States and the world at large, Goldman Sachs, publish a report on crypto, and the contents look quite favourable for the crypto ecosystem.
The report – “Crypto: A New Asset Class” is yet to be made available for the general public, but yet it has been trending on social media as it was shared by the investors that got early access to these researches and investigation.
The founder of Asset management firm Aike Capital, Alex Kruger, which is also known as a Twitter commentator on Crypto, revealed a part of the report on his feed saying the full report will be available in few days.
Experts Inform Goldman Sachs Why the Digital Assets Are Proving their Worth
In the report, the nature of crypto was discussed as an asset class. In doing this, different opinions of diverse experts in the crypto space were sampled, including Michael Novogratz, the CEO of Galaxy Digital, Zach Pandl of Global FX, Chainlaysis’s Michael Gronager, and critics like Nouriel Roubini.
In the report, there was an extensive description of the important characteristics of the leading cryptocurrencies and the importance of each of them.
For example, in this light, the research from the bank explains that BTC is the largest-cap currency, Ethereum serves as a smart contract platform, XRP as a real-time payment settlement system, Polkadot as an interoperability capabilities blockchain, and BNB serves as a utility token & application. In addition to the characteristics, the report provides each project with special features that allow for some characterization based on the target audience.
As mentioned by Goldman Sachs, the value of Bitcoin fundamentally lies in its acceptance and usage.
Michael Novogratz noted that the increasing influx of institutional funds is the proof of adoption and acceptability of cryptocurrencies and, ultimately, the maturity of the market.
He further defended the nature of Bitcoin as a good store of value because of the favourable simple social sentiments around the coin.
From the part of the CEO of Grayscale Investments, Michael Sonnesheim, he reinforced the view of Novogratz. In his opinion, the scarcity of bitcoin is a way of hedging inflation and the debasement of the currency.
He also mentioned cryptocurrencies, although they were particularly affected by the overall economic downturn due to the COVID-19. The rebound in 2020 later made the asset outperformed other asset class, which further reaffirm the resilience of BTC and other cryptos.