Goldman Sachs has released its half-yearly economic report, the investment bank remains pessimistic about the future of the cryptocurrency market.
As reported by CNBC, Goldman Sachs presented its report "Review of our outlook for 2018". In this study, GS says that "cryptocurrency mania" would be one of the six most threatening factors this year and that the fall in cryptocurrency prices like bitcoin should continue.
Sharmin Mossavar-Rahmani, Head of Investment at GS, wrote:
"We expect further declines in the future because we believe that cryptocurrencies do not fulfill any of the three traditional roles of a currency."
She then compared the cryptocurrency market to traditional assets:
"Crypto-currencies represent only 0.3% of global GDP in mid-2018. In fact, we think they attract a lot of media attention when it is not justified. "
Goldman Sachs has always had an anti-bitcoin position even though the bank announced the opening of a bitcoin trading desk in May 2018 following strong demand from its customers.
However, Lloyd Blankfein, the current CEO of GS, said last June "it was too arrogant to think that cryptocurrency would not be adopted on a large scale". In addition, David Salomon has been appointed as future CEO and will take the place of Mr Blankfein at the end of the year. Mr Salomon would be more focused on bitcoin than his predecessor.
It is not the only major financial institution to be worried about the cryptocurrency market. Earlier this week, Union Bank of Switzerland (UBS) claimed that Bitcoin, in its current form, was too volatile and limited to become a viable form of payment or a mainstream asset class.