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Goldman Sachs shuns Bitcoin as price plummets

(Image credit: Image Credit: Julia Tsokur / Shutterstock)

Even though bitcoin may be too unpredictable for Wall Street banks, Goldman Sachs Group is looking into how it can appeal to its customers' interest in the popular cryptocurrency. 

During a recent event, the bank's CEO Lloyd Blankfein commented on bitcoin's volatility as an investment, saying: 

“Something that moves up and down 20 percent in a day doesn't feel like a currency, doesn't feel like a store of value.” 

However, Goldman Sachs would be willing to trade in bitcoin if the cryptocurrency started to trade in a less volatile manner after becoming more established.  This is likely the case with most big banks that see a great deal of interest from their clients but consider now too risky of a time to get involved themselves. 

Unlike physical currencies, bitcoin is not currently backed or regulated by any government but if this were to change so to might the position of large financial institutions on the digital currency.  On the other hand, blockchain, the technology behind bitcoin has garnered a great deal of attention from businesses, banks and governments who see tremendous value in the idea of decentralised digital ledger. 

Currently a split exists between Wall Street executives and US officials over whether or not digital currencies are a worthwhile investment.  Jamie Dimon, CEO of JPMorgan Chase is one of the strongest critics of bitcoin and called the cryptocurrency a “fraud” earlier this year. 

With the tremendous interest in bitcoin and other cryptocurrencies from investors and consumers, it is clear that governments around the world may step in soon to regulate them as many have already begun to do with initial coin offerings

Image Credit: Julia Tsokur / Shutterstock

Anthony Spadafora
After living and working in South Korea for seven years, Anthony now resides in Houston, Texas where he writes about a variety of technology topics for ITProPortal.