Pages from a Goldman Sachs paper on cryptocurrency have been posted on Twitter. The study reflects a 180-degree change from the bank’s status a year ago.
Alex Krüger, economist, crypto investor, and founder of asset management company Aike Capital, posted screenshots of the study on Twitter today. He shared some screenshots from a Goldman Sachs paper named “Crypto: a Modern Asset Class?” on Twitter.
Crypto, a new asset class – quite a comprehensive report by Goldman. pic.twitter.com/FP2sewJCTx
— Alex Krüger (@krugermacro) May 21, 2021
In a study published late in May 2020, Goldman Sachs said that cryptocurrencies are “not an asset class.”
However, in the middle of this week’s market meltdown, the banking behemoth issued its latest paper, which refers to cryptocurrency as “a modern asset class.”
A Total 180 for Goldman
The bank had come a long way since its 2014 article regarding Bitcoin, which it defined as having “no revenue, no realistic uses, and high volatility.”
The article is in-depth, covering the mechanics of the crypto network as a whole, as well as Bitcoin and Ethereum individually. It encompasses the crypto industry’s architecture, protocol, utilities, and applications levels.
It goes above the fundamentals and delves into the complexities of the world’s biggest network. Aside from how it operates, the paper also discusses the demand and supply dynamics.
As the bank sizes its business, Goldman has branded Ether as equally critical and provided it its own segment.
Although Ether’s supply isn’t limited like Bitcoin’s, the rate of new growth is slowing, according to the paper, which includes graphs of the network’s fees and dapps.
With the exception of this week’s huge plunge, Bitcoin and Ethereum have provided profitable returns for investors for the majority of the global pandemic, sparking a dispute about whether Bitcoin was, in effect, protection against inflation.
Goldman Sachs also gradually backed down from their original stance on cryptocurrencies. The investment bank declared its involvement in making its own stablecoin in August of last year, and shortly after that, it advertised for a Vice President of Digital Assets.
Since then, the financial behemoth has taken significant measures to integrate cryptocurrency through its operations.
For the first time since 2018, Goldman Sachs started selling Bitcoin futures in March, and at the start of this month, it extended the offering to other Wall Street firms.
Last month, CEO David Solomon said that he believes there would be a “significant evolution” of crypto policy in the United States.