Apparently, in the coming 2018, the popularity and acceptance of bitcoin will rise. The year has just begun and we’ve already heard some loud statements. First, Jamie Dimon of JP Morgan Chase announced that it regrets that called bitcoin a Scam. Today the most famous of the crypto-skeptics left Warren Buffett, who is awaiting the imminent collapse of bitcoin. And now one of the largest U.S. banks, Goldman Sachs, has officially recognized that cryptocurrencies can be used as money.
Goldman Sachs took the bitcoin to money
In the internal research by Goldman Sachs under the name of Bitcoin as Money (Bitcoin as money) States: «Our working hypothesis is that long-term income in the cryptocurrency must be equal (or be slightly lower) to the real growth in world output — the number of lower level». Thus, the digital currency is «regarded as assets with low/zero profitability, or assets aimed at the preservation of assets like gold and other precious metals» — they say.
Goldman Sachs, which is considered the most traditional of American banks, there are more than 150 years. He appeared before the Federal reserve, in its history, has witnessed many financial changes. Former Bank employees occupy senior positions in government agencies, but the statements of the Goldman listen all financial markets.
In its work, the strategy of the Bank Pendle Zach (Zach Pandl) and Charles Himmelberg (Сharles Himmelberg) explain that «in recent decades, the U.S. dollar did its job relatively well,» but «in countries and financial systems where traditional financial services are being provided inadequately, bitcoin (and cryptocurrencies in General) can be a viable alternative.»
Usage scenarios of cryptocurrencies in these regions abound, from Zimbabwe to Venezuela.
«The widespread use of the dollar outside the United States, as well as full dollarization in some countries indicate a demand for a universally accepted medium of exchange and store of value» — they continue.
The heavy burden of public money
In the analysis of the Bank’s specialists is lacking descriptions of the heavy burden, which is the U.S. dollar as the world reserve currency and store of value. To realize this, it is necessary to understand the General idea kiberpank underlying cryptographic money. The Federal system is based on the American dollar. In turn, the state apparatus supported by the Ministry of Finance of the United States, which protect against monetary competition, military and judicial structure of the state.
The international Convention and shared a realistic view of the world make Fiat currency more «stable» and «valuable» than it would be without the involvement of security institutions. The authors Goldman do not account for neither. In fact, they predict the adoption of bitcoin by the Bank and other institutions, keeping in mind the upcoming changes to legislation and regulation. In their opinion, these changes will facilitate mass adoption of cryptocurrency.
And Pendle, and Himmelberg recognize the potential of bitcoin to service the non-banking sector. In countries like India and China, where the rise of the General dissatisfaction with the national currency, bitcoin can be very popular. However, at the moment, the authors are more inclined to carry bitcoin to the «classic speculative bubble». On the other hand, apparently, this fact does not stop their employer from the Foundation of the native platform cryptocurrency trading.