Bitcoin now nearly worth Goldman Sachs
Earlier this week, Goldman Sachs, the $90 billion investment banking firm, told its investors and clients that it is becoming more difficult for institutional investors to ignore Bitcoin and the cryptocurrency market.
In a letter to its investors, clients and portfolio managers, JP Morgan analyst Robert D. Boroujerdi wrote:
“With a total value of nearly $120 bln, it’s getting harder for institutional investors to ignore cryptocurrencies. There are currently over 800 cryptocurrencies out there, though just nine have a market cap in excess of $1 bln.”
As a prelude to the following remarks, be aware the $120 billion mentioned above has become $138 billion. That’s better than any other investment this year. And 1 Bitcoin is now worth more than THREE ounces of Gold. And guess what? Though neither asset pays dividends, the growth in the value Bitcoin makes it a much more attractive “hold”.
Institutional investors and professional traders are starting to pay attention to Blockchain and Crypto currencies, and are making significant profits
Traders and investors want to invest in an asset or a currency that will hold value and increase. On past performances, the crypto currency markets are doing exactly this. Consistently, since its launch in 2009, Bitcoin has outperformed every stock and currency in existence, and by incredible margins.
Perhaps more importantly, the Bitcoin and cryptocurrency markets have matured significantly in the last year, as total cryptocurrency market capitalisation has increased from a mere $11 billion to a staggering $138 billion. An increasing number of governments have legalized Bitcoin and for institutional investors, liquidity for Bitcoin trading has drastically increased. Daily trading is now mostly above $5 billion per day.
In the last week, the Chicago Board Options Exchange (CBOE), the largest options exchange in the US, announced a partnership with the Winklevoss twins’ Bitcoin exchange Gemini to integrate Bitcoin as one of its main assets. Through the partnership and CBOE’s integration of Bitcoin, Gemini CEO Tyler Winklevoss vowed to improve the Bitcoin trading market for retail and institutional investors.
“Gemini’s key concerns in the cryptocurrency ecosystem have always been security, compliance and regulatory oversight. By working with the team at CBOE, we are helping to make Bitcoin and other cryptocurrencies increasingly accessible to both retail and institutional investors,” said Winklevoss.
Goldman: doesn’t matter if you believe in the technology, see the rise in value
Most Bitcoin experts, analysts and advisors – if they say anything other than “BUY BUY BUY” – might tell any investors only to invest in cryptocurrencies or Blockchain networks that they see value in, either as a store of value, as a digital currency or as a disruptive technology.
However, Goldman Sachs aren’t so bothered about such things, but are very much focused on making gains and profits for themselves and their investors.
They explained in a statement that even if investors don’t fully understand the technical intricacies of cryptocurrencies, they should recognize the value in Bitcoin, Ethereum and the cryptocurrency market.
Goldman Sachs noted:
“The debate has shifted from the legitimacy of the ‘fiat of the Internet’ to how fast new entrants are raising funds. Whether or not you believe in the merit of investing in cryptocurrencies (you know who you are) real dollars are at work here and warrant watching especially in light of the growing world of initial coin offerings (ICOs) and fundraising that now exceeds Internet Angel and Seed investing.”
This last is very significant. It represents the first real step change in financial markets almost since joint stock companies were invented. Remember, Bitcoin is the Reserve Currency of the Crypto world.