Pure Reports
Sep 7, 2018 · 2 min read

Goldman Sachs — Bitcoin

People usually look to big players to make the first move and then they follow. With this in mind, Goldman Sachs’ decision of not pursuing a cryptocurrency trading desk for the foreseeablefuture dropped the market by $12bn. Or has it?

Financial institutions face the problem that centralised exchanges are vulnerable to hacks. This makes it difficult for banks to look after assets and at the same time keep regulators happy. This regulatory uncertainty with regards to this asset class is putting Goldman Sachs off.

If Goldman Sachs had established a trading office, it would certainly add to the legitimacy of cryptos and even help them go mainstream, but on the other hand Goldman Sachs was not into the crypto trading up to now and everything was still functioning.

It could be the case that the market drop was a consequence of a sell pressure build up on Bitcoin and coupled with low volume, it caused a domino effect. This would imply that Goldman Sachs news or fake news, as stated later by Goldman Sachs CFO on September 6th,was irrelevant or merely part of the equation.

It is easier, and in our nature as human beings to blame what we can easily understand, but perhaps there is a bigger picture.

In summary, a $12bn drop might have been an overreaction but maybe an opportunity for others as well to get in the game. Who is to blame is a far more difficult question and I would direct you to Cointelegraph for an interesting article and more information.

One thing is certain, the crypto space is an exciting environment to be in.

Pure Reports

Pure Reports is here to provide pure and simple ICO/STO reports to the crypto community

Pure Reports

Written by

Pure Reports is here to provide pure and simple ICO reports including ratings to the crypto community.

Pure Reports
Welcome to a place where words matter. On Medium, smart voices and original ideas take center stage - with no ads in sight. Watch
Follow all the topics you care about, and we’ll deliver the best stories for you to your homepage and inbox. Explore
Get unlimited access to the best stories on Medium — and support writers while you’re at it. Just $5/month. Upgrade