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While several major Wall Street firms have embraced cryptocurrencies, banking titan Goldman Sachs has opted for a different approach. Sharmin Mossavar-Rahmani, Chief Investment Officer of the bank’s Wealth Management division, has expressed a pessimistic view of the cryptocurrency sector. 
<h3 id="crypto-isn-t-an-investment-asset-class">Crypto Isn’t An Investment Asset Class</h3> 
Sharmin has been a long-time critic of cryptocurrencies and his stand remains the same despite the strong institutional demand for the asset class. In fact, she doesn’t consider crypto to be an investment asset class in the first place. In her interview with the Wall Street Journal, Sharmin <a rel="nofollow" href="https://www.wsj.com/finance/currencies/bitcoin-price-goldman-01189443" target="_blank">said</a>: 
<blockquote>
 “We do not think it is an investment asset class. We’re not believers in crypto.”
</blockquote> 
On the other hand, Goldman Sachs competitors in traditional finance – BlackRock and Fidelity – have doubled down their efforts after most clients showed interest in Bitcoin. However, Sharmin stated that there’s no such demand from the clients of Goldman Sachs. 
She points out that one of the reasons she finds no merit in the asset is due to the challenge of accurately assessing its value. “If you cannot determine its worth, how can you confidently take a bullish or bearish stance?” she questioned. 
Furthermore, she criticized the industry, labeling it as hypocritical. She highlighted the discrepancy between the industry’s advocacy for financial democratization and the reality of a few individuals wielding significant control over key decisions. 
<h3 id="crypto-maverick-slams-goldman-sachs">Crypto Maverick Slams Goldman Sachs</h3> 
In his latest newsletter, popular Bitcoin investor and entrepreneur Anthony Pompliano lashed out at the <a href="https://coingape.com/goldman-sachs-revises-outlook-on-fed-rate-cuts-predicts-starting-in-june/" target="_blank" rel="noopener">Goldman Sachs</a> executive for denying Bitcoin and crypto the status of ‘investment asset class’. 
Pompliano underscored Bitcoin’s evolving role as the premier digital currency of the internet. He highlighted that a growing generation, accustomed to digital interactions and spending significant time online, views Bitcoin as the global internet reserve currency and default store-of-value. 
Addressing concerns raised by others in the financial realm, Pompliano countered assertions that Bitcoin lacks investment potential. Despite skepticism from some quarters, he emphasized the significant inflow of funds into the $2.5 trillion cryptocurrency market, particularly from institutional investors, as indicative of its growing legitimacy as an asset class. 
Furthermore, Pompliano refuted claims that cryptocurrencies primarily facilitate criminal activities. He cited data indicating that illicit transactions account for less than 0.5% of total cryptocurrency transactions, challenging misconceptions about the sector’s integrity compared to traditional fiat currencies. 
Regarding volatility concerns and assertions of Bitcoin’s lack of inherent value, Pompliano offered a perspective shift. He noted that Bitcoin’s volatility primarily pertains to its exchange rate against fiat currencies like the US dollar, while its purchasing power has consistently increased compared to fiat over recent years. This contrasted starkly with the declining purchasing power of traditional currencies, such as the US dollar, suggesting Bitcoin’s potential as a hedge against inflation and store-of-value asset. 
The post <a href="https://coingape.com/anthony-pompliano-goldman-sachs-says-crypto-in-not-an-investment-asset-class/">Goldman Sachs Under Pressure for Rejecting Crypto’s ‘Investment Asset Class’ Status</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Goldman Sachs Under Pressure for Rejecting Crypto’s ‘Investment Asset Class’ Status

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