Global investment bank Goldman Sachs is questioning whether bitcoin can be a long-term store of value and digital gold. The firm’s analysts cited various issues with the cryptocurrency, such as environmental problems, “lack of real use,” and competition from other cryptocurrencies.
Goldman Sachs Sees Problems With Bitcoin as Long-Term Store of Value
Goldman Sachs published a note outlining some problems with bitcoin as digital gold on Wednesday. The firm’s analysts, led by its top commodities strategist Jeffrey Currie, have voiced concerns about whether the cryptocurrency could become a long-term store of value.
The analysts explained: “While bitcoin benefits from greater liquidity, it suffers from lack of real use and weak environmental, social, governance ESG scoring, due to its high energy consumption.” They also cited competition from other cryptocurrencies as a factor stopping bitcoin from becoming digital gold, elaborating:
Traditional long-term stores of value such as gold, art, diamonds, wine and collectibles all have value and use beyond being stores