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- Swiss Bank’s head of digital assets, Chris Thomas, refutes Goldman Sach’s claims about Bitcoin (BTC) and declares it an emerging asset class.
- Goldman Sachs ignores the fundamentals and strong foundation of Bitcoin as an asset class of its own, according to Thomas.
The head of digital assets for the Swiss Bank, Chris Thomas, published a response to Goldman Sachs for the conference it held days ago with its clients. At that conference Goldman Sachs discussed Bitcoin (BTC) in depth as an asset and an investment. However, before the conference, part of the presentation was leaked and the investment group’s opinion on the cryptocurrency became public. Their conclusions were negative and therefore Thomas refuted the points made by Goldman Sachs against Bitcoin.
The conference had generated positive expectations in the crypto community, but when reading the presentation it became clear that the investment group recommended its clients not to invest in Bitcoin. Goldman Sachs, among other things, said that Bitcoin is not an asset class and criticized the volatility of the cryptocurrency. Thomas said Goldman Sachs’ claims are a disservice to its investors and described them as unfair to the crypto community.
Bitcoin is an emerging asset class
Thomas sees Bitcoin instead as an emerging asset class still in the making. In addition, he added that Bitcoin and other select cryptocurrencies are causing a paradigm shift in the world. The head of digital assets for Swiss Bank further outlined:
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 tokenized, and trading them will be democratized.
Volatility, as mentioned, is also another point that Goldman Sachs used to discredit Bitcoin as an investment. The investment group noted that on March 12, on a day known as “Black Thursday” in the community, Bitcoin lost about 37% of its price. This fall was devastating for the cryptomarket and affected Ethereum, Litecoin and other major cryptocurrencies. Thomas used the historical falls in oil prices as an example to show that volatility is part of all markets:
Absolutely, Bitcoin did fall 37% (…). And just one month later, oil markets plunged 333% in the space of 24 hours, nearly a 10x greater drop, touching a low of MINUS $40 per barrel at one point. In December 2019, Goldman Sachs predicted the average price of oil through 2020 would be $63 per barrel.
