Remember the posts about the Morgans and Goldman who invested in crypto funds and started to promote the idea? The idea of bitcoin is a very good hedge against inflation and is similar to gold. The fact that these are completely different assets is as obvious as two times two makes four, and I emphasized that this is also obvious to investment banks. If you want to invest, try online casino games Uganda and you will get a chance to win the jackpot and your investment will be approved.
Chaos Is Rising
Now, look at the copyright under the charts above. These were prepared by Goldman Sachs Commodity Research and sent out to clients in late January under the title “Gold: Time to Buy a Defensive Real Asset.”
Although in early January they also wrote that “Bitcoin will compete with gold as a store of value.” I would like to replicate this case as an example of how easily investment bankers can change shoes. But they did not name a time frame, and therefore they cannot be accused of inconsistency.
And note that now Goldman Sachs is actually talking about the lack of product/market fit for cryptocurrencies.
The cryptocurrency market decreased by more than $200 billion in a day. The collapse occurred against the backdrop of the fall of the “stablecoin” TerraUSD (UST). Let me remind you that a “stablecoin” by design is a stablecoin that is pegged to a specific currency. So UST should be worth $1, but now it’s worth less than $0.25.
The fall of UST, which coexisted with the LUNA token in an absolutely flawless and transparent system of smart contracts, is an unthinkable phenomenon for crypto adherents. For them, a natural cataclysm occurred and they continue to believe that this will definitely never happen with USDT together with USDC, because these are not just “stablecoins”, but “stablecoins” backed by a real dollar.
However, USDT issuer Tether was fined $41 million in the US for making false statements about the amount of collateral back in 2017, and in general articles like Bloomberg’s “Anyone Seen Tether’s Billions?” The press is full. Now, regulators are worried about stable coins. And Ms. Yellen herself has started talking about their risks.