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A Surprising Turn – Goldman Sachs Finally Agrees that Bitcoin Could Be Viable

The Organization Can Now See Bitcoin’s Future Potential

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Goldman Sachs has on several occasions expressed pessimism over the future of Bitcoin and other cryptocurrencies. This is why it comes as a surprise that it now recognizes their viability. The argument is logical, but there ares still some reservations.

If Goldman Sachs is correct, cryptocurrencies such as Bitcoin may become the money of the future – at least in some regions.   

The New Currencies of the Developing World

Goldman Sachs argues that the developing world may shift to the use of cryptocurrencies for a variety of reasons:

Value stability

Unlike in the U.S., where the dollar is fairly stable and transactions costs are affordable, developing countries are constantly dealing with financial instability. For instance, the Zimbabwean currency became so inflated that it was practically useless – today, Zimbabwe transacts with the U.S. dollar. What’s more, foreign money makes up more than 90% of the currencies in the Democratic Republic of Congo.    

Cryptocurrencies are becoming popular in developing countries, and for most people, they are more convenient than fiat money. They are fairly stable, and their value is constantly rising – this, of course, depends on the cryptocurrency that you invest in.

Ease of access

Some developing countries impose strict rules over the use of foreign currencies in a bid to control the financial system. However, they cannot limit the use of Bitcoin as it is decentralized – the greatest convenience of cryptocurrencies is that they are beyond the control of governments and banks. All you need to do to get some Bitcoin, is buy some online on any of a wide range of crypto exchanges.

Nationals from these currencies will likely invest in Bitcoin and stick with it in a bid to overcome their governments’ restrictions.

Promise of Profits

Bitcoin’s success has been unprecedented; its value has risen exponentially. One Bitcoin is now worth thousands of dollars, having risen from as little as $30. This is partially the reason behind the new craze in cryptocurrencies; most people are seeking to get rich.

People from the developing world are taking note too, and they are all too eager to invest in new cryptocurrencies.

The Craze Will End Soon

There is no doubt that the promise of profits is to blame for the crypto craze that is going on. Since Bitcoin hit the thousand-dollar mark, everyone has been seeking to invest in emerging cryptocurrencies, hoping that they will take the same route. However, Goldman Sachs argues that the trend will soon end as crypto becomes mainstream. At the end of the day, a cryptocurrency is valued against fiat currency such as the U.S. dollar. As more and more people buy them, they will flood the market and stabilize in value.  

Goldman Sachs argues that digital currencies should be considered to be hedge-like assets such as gold. To this end, investors should not expect astronomical returns in the future. In the meantime, however, cryptocurrencies are showing great promise, and the craze is ongoing.  

Would you consider using digital currencies for most of your transactions? Share your thoughts with us in the comments below.  

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