Strategists from one of the largest investment bank in the world, Goldman Sachs, published a report recently in which they admitted bitcoin and other digital currencies can succeed as real money in the developing countries: “In the last couple of years the American dollar has been serving its purpose relatively well. But in the developing countries and peripheral parts of the financial system, where the traditional money services are provided inadequately, bitcoin (and the cryptocurrencies in general) can offer a sustainable alternative.”
However, Goldman Sachs warns about expecting the same profit level as it was last year: “Our working assumption is that the long-term profit from cryptocurrencies should be equal (or a little below) to the growth of the real performance – the number with the lowest individual number. So, the digital currencies should be observed with low/zero returns or as a hedge assets, similar to gold or other metals.”
The new statement from Goldman Sachs represents a change of opinion towards the cryptocurrencies. The traditional financial institutions and investors are normally very skeptical when it comes to the cryptocurrency world. Some of the biggest investment banks and investors have been calling bitcoin and other cryptocurrencies a scam, a bubble and warning people to stay away from them.