TL;DR Breakdown
- Goldman Sachs executive thinks Bitcoin is too volatile to be a medium of exchange.
- BTC is still doing great in the market.
For years, there has been a huge debate surrounding Bitcoin’s status as a proposed store of value and means of exchange. While a lot of people seem to think the top coin fits both roles, there are those who opine that it’s unviable. One major factor those who bash Bitcoin tend to posit is their strong affiliation with the banking industry or gold investments.
The latest top official to voice opposition to Bitcoin as a means of exchange turns out to be an executive at Goldman Sachs, a big and popular bank. Mossavar-Rahmani is the lead investment strategist for Goldman Sachs. According to her, BTC doesn’t fit the bill as a viable means of exchange for a number of reasons.
Bitcoin is volatile
Rahmani points out that the top coin’s price has fluctuated, and that it’s very prone to long-term volatility. In her opinion, that makes the crypto unsuitable for adoption as a medium of exchange. In a further move attempting to discredit the current market buzz, Rahmani said the raise in the popularity of the crypto isn’t a direct pointer to its future success as a store of value. She likened its popularity to GameStop’s, giving the notion that she thinks the hype will soon fade away.
However, BTC has seen a massive surge in price since the start of the year, peaking at around $42k in January when it established a new ATH. During this surge, the crypto gained by around 100% in value. It’s currently trading at around $37,400, with a market dominance of over 60%.
The market is still unfazed
The volatility of Bitcoin’s price has been the major talking-point used by its proponents to discredit it. That hasn’t stopped the BTC community from growing larger every year. Even institutional investors have joined the crypto bandwagon. PayPal and Visa have development crypto-oriented functionalities to integrate into their payment systems and gain from the growing market buzz. In fact, there are those who think Bitcoin is destined for a much higher price.
