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  • Goldman Sachs bank had released a report detailing the reasons why crypto is not an asset class.
  • The crypto community, including the Winklevoss twins, has criticized the report publicly. 

Goldman Sachs recently released a report that outlined five reasons why crypto is neither an asset class nor a suitable investment. The bank had said: 

We believe that a security whose appreciation is primarily dependent on whether someone else is willing to pay a higher price for it is not a suitable investment for our clients. While hedge funds may find trading cryptocurrencies appealing because of their high volatility, that allure does not constitute a viable investment rationale.

Understandably, the crypto community was not happy with the report. The Winklevoss twins, who co-founded the Gemini crypto exchange, took to Twitter to criticize the report. Cameron Winklevoss said: 

Hey Goldman Sachs, 2014 just called and asked for their talking points back. [email protected]

Tyler Winklevoss said: 

The more I think about it, the Goldman report is probably a head fake [email protected]

Additionally, Goldman Sachs compared crypto’s popularity and the 2017 Bitcoin rally to Dutch tulip mania. The latter took place in the 17th century and is a well-known example of a speculative bubble. 

Mati Greenspan, the founder of Quantum Economics, wrote:

Goldman Sachs served a cold dish to the crypto community, which was largely expecting them to come out with a bullish call on the world’s number one digital asset. Perhaps Goldman is just trying to jawbone Bitcoin to buy more for themselves at a cheaper price. Who knows?