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Goldman Sachs remains defiant when it comes to bitcoin having any role in the financial markets. Its investment strategy group says bitcoin will continue to decline. This despite a sharp rise in recent days (albeit with another fall heading into Friday). Also the online gambling sector continues to see record transactions courtesy of bitcoin and other cryptocurrencies.
"Our view that cryptocurrencies would not retain value in their current incarnation remains intact and, in fact, has been borne out much sooner than we expected," the Goldman Sachs team lead by chief investment officer Sharmin Mossavar-Rahamani said.
"We expect further declines in the future given our view that these cryptocurrencies do not fulfill any of the three traditional roles of a currency: they are neither a medium of exchange, nor a unit of measurement, nor a store of value.
"Importantly, we continue to believe that such declines will not negatively impact the performance of broader financial assets, because cryptocurrencies represent just 0.3% of world GDP as of mid-2018," the report said. "In fact, we believe that they garner far more traditional media and social media attention than is warranted."
The current price of bitcoin was sitting around $7500 as of 11 am EDT Friday.
Some online gambling sites are reporting that up to 80% of all transactions are via bitcoin heading into the new football season.
- Aaron Goldstein, Gambling911.com
