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Goldman Sachs is not opening a bitcoin trading operation because they believe in the legitimacy of blockchain tech. The only reason Goldman is doing this is be
by joejerryronnie 9y ago
Goldman Sachs is not opening a bitcoin trading operation because they believe in the legitimacy of blockchain tech. The only reason Goldman is doing this is because they smell money and realize that jumping into a bubble can net them hundreds of millions/billions of dollars in profit. They are not going to make money from buying bitcoin, they are going to make money in fees they charge other large clients to buy/sell/hedge/etc bitcoin. They'll also create some exotic bitcoin-based financial instruments that nobody can understand but will sell to pension funds for gobs of money.
Will blockchain revolutionize tech and business in general? Will a Bitcoin be worth a million bucks some day? Will crypto replace traditional currency? I don't know - but I guarantee that is not the angle Goldman is playing here.
- d0ugie 9y agoGoldman is experimenting, not smelling big bucks. Other firms, namely JPMorgan, won't touch bitcoin for the same reasons they train every employee over and over how to stay away from money laundering red flags. Banks have populist targets on their backs, getting involved with Bitcoin elevates the bright redness of those targets. But Goldman is uniquely smart and I'm intrigued. Guess I'll add them as a custom Google News section...
- joejerryronnie 9y agoGoldman is very smart but they are also willing to throw ethics out the window and put huge swaths of society at financial risk if they can capitalize on it. I like them as an investment but they are kind of the epitome of capitalism's worst excess.