Goldman Sachs Invested in Bitcoin Because It Expects a Blockbuster IPO
Does it raise expectations? Is the bank’s investment in bitcoin good or bad?
Gigantic investment banks only put money into things they anticipate will have a huge payoff.
When it comes to Goldman Sachs’ investment in Circle Internet Financial, it’s expected Circle will either be acquired or have a massive initial public offering.
A company using cryptocurrency like Circle eventually going IPO would be great for bitcoin.
This raises the bar for the industry — and the expectations.
Can the cryptocurrency industry deliver?
We asked the ZapChain community of bitcoin experts what they think. This is what they said:
1. Validity
No matter what people may think of Goldman Sachs, its investment is legit.
“I think it’s great news. It adds legitimacy to bitcoin. It’s only a matter of time before money begins to be invested directly into bitcoin instead of bitcoin companies.”
2. Clarity
Bitcoin’s blockchain allows for increased public data about financial transactions — the hope is this will be used on Wall Street.
“My hope is that blockchain tech will bring more transparency to recorded financial accounting activities, contracts and agreements, etc. within Wall Street firms. It should make the task of forensic accounting 100 times easier for obvious reasons and should make getting away with cooking the books a lot harder.”
3. Graft
Bribery and fraud have been problems in the financial markets — bitcoin may help to reduce this issue in banking.
“I for one am not a fan of Goldman, don’t know about the rest of you. I think where Goldman lays there is sure to be corruption.”
4. Connection
Instead of investing directly in bitcoin, Goldman chose to put its cash into infrastructure to help strengthen the industry.
“Investing in a “bridge” company like Circle is a wise move.”
5. Safety
Bitcoin can be safer than credit cards or other means of electronic payment – Circle is helping to realize that future.
“They also allow you to easily convert into USD and have FDIC insurance. This makes Circle more secure than PayPal.”
6. Recognition
The general perception of bitcoin must be improved for it to become the financial tool many envision it can be.
“Another big validation for the industry at a time when we need more credibility in the minds of the general public.”
7. Control
Bitcoin gives people the ability to have better oversight over their own money if they choose to.
“No matter what you think of Goldman’s involvement personally, the beauty of bitcoin is you can use it inside or outside the mainstream financial system if you choose.”
-Jon Southurst, tech & bitcoin writer
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