Monday, 4 December 2017

GS: The bitcoin is a raw material

The bitcoin is more like gold than the US dollar, according to Jeff Curry, head of the Goldman Sachs State Investment Bank unit, in a special interview for Bloomberg TV.
The bitcoin does not have the same amount of liquidity as gold, which is the main difference with the metal.
According to Curry, the price of the bitcoin is determined by the market and is not supported by a government, public or private company, just like gold.
Of course, the bitcoin is much more volatile than gold, and Curry explains that liquidity is the main reason for that. There are $8.3 trillion amount of gold worldwide, while the market capitalization of the bitcoin is close to $165 billion, making it much less liquid and more volatile.
Curry's comments come true after the cost of the bitcoin reached levels of more than $11,000, and then fell only a day later to less than $10,000. They come at a time when Goldman Sachs chief Lloyd Blenkheim said he is still considering the possibility of a bitcoin.
The meteoric appreciation of the bitcoin raised public interest in cryptocurrency to record levels.