Tuesday, October 3, 2017

Look out muppets because Goldman Sachs is looking to start a Bitcoin and cryptocurrency trading desk

Goldman Sachs is well known in the financial industry as an entity that looks out more for themselves than they do for their customers.  And this assessment can be seen in how traders feel about their clients (calling them muppets), and by the fact that very often they bet against the very advice they give to these same clients.

So forget commodities, derivatives, and the myriad of paper assets they normally trade as it appears now that Goldman wants to take their road show into the cryptocurrency sphere by looking at starting a Bitcoin and crypto trading desk.

A new trading operation dedicated to digital currencies is being explored by Goldman Sachs, sources told the Wall Street Journal. It could be the first blue-chip Wall Street firm to deal directly in the growing yet controversial cryptocurrency market.
“In response to client interest in digital currencies, we are exploring how best to serve them in this space,” said an unnamed Goldman spokeswoman. 
According to people familiar with the matter, Goldman’s effort involves both its currency trading division and the bank’s strategic investment group. The firm sees bitcoin’s future more as a payment method rather than a store of value. 
Sources also said Goldman’s effort is in its early stages and may not proceed. The firm’s interest, however, could strengthen bitcoin’s position as digital currencies were initially viewed as havens for illicit activity. – Russia Today
What this will mean in the long run for cryptocurrency prices is completely uncertain, however the thing to realize is that global banks like Goldman Sachs have the capital to purchase most if not all of these cryptocurrencies in the markets.  And should that happen, price movements would fall in line with every other asset that is manipulated by the banks with the underlying attributes that make cryptos so enticing being summarily negated.


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