The eye of big finance is finally turning towards cryptocurrency. Responding to requests from clients, Goldman Sachs has put out an early assessment of Bitcoin that says little about the bank’s official position on BTC investment.
So far, the financial services firm is neutral regarding the currency and is not actively recommending it to clients in its broad assessment of the currency and its impact for merchants and consumers. The bank’s take on Bitcoin attempts to tamp down on some of the hype around the currency.
The document, which we acquired through a source close to the bank, states: “2013 was the year when Bitcoin became a mainstay in mass media, to the extent that it has become hard to separate the effect of hype surrounding the currency from its fundamentals.”
Goldman also found that “there is no liquid derivative market for Bitcoin; nor a large market of B2B suppliers which companies can use for spending Bitcoin” and reiterates that Amazon has no current plants to accept Bitcoin. Both of these facts point to little traction in the BTC markets for big banks. Without the imprimatur of a big name, Goldman warns, the currency is a bit dangerous to offer to the serious investor.