Mainstream adoption may not benefit crypto hodlers, Goldman Sachs. Despite the fact that Bitcoin (BTC) is getting increasingly popular, according to Goldman Sachs. The growth in acceptability of cryptocurrencies may not necessarily translate. Into an increase in the value of bitcoin in dollar terms.
According to a report published on Thursday by Bloomberg. It is according to research collected by the global banking behemoth and revealed on Thursday. Increasing acceptance of cryptocurrency assets would strengthen their correlation. With other mainstream asset classes, as previously reported.
Goldman: Mainstream Adoption is a “double-edged sword”
But many Bitcoin supporters, including Goldman. These are fiercely opposed to the concept of cryptocurrency being used to assist members of the general public. Goldman has demonstrated a fundamental lack of interest in the concept of cryptocurrency. That being used to benefit members of the general public.
Despite the fact that it has the potential to increase valuations. The study forecasts that it will increase correlations with other financial market indicators. Which will limit their usefulness when used to diversify investment portfolios. The fact that it will increase correlations with other financial market elements. Does not make this reality any less true.
As Zack Pandl and Isabella Rosenberg point out in their article. “Mainstream adoptive parenting” is a “double-edged sword” in that it has both advantages. And downsides. They feel that mainstream adopted parenting is a “double-edged sword.” Since it has both advantages and problems.
Because bitcoin and other cryptocurrencies are becoming increasingly associated with current assets. The possibility of making an asymmetric profit decreases as a result of this association.
However, despite the fact that cryptocurrency markets are showing a higher correlation. With stocks, particularly this month, the outlook for 2022. Does not appear to be favorable in terms of a big recovery, at least in the short term.
In spite of the fact that Goldman Sachs is not committed to a particular story. The bank predicted earlier this month that Bitcoin/USD may hit $100,000. In the near future – perhaps paradoxically. By snatching market share away from gold and attracting more traditional investors as a result.
Simple supply and demand?
There are a number of Bitcoin concepts available. In addition to alternate bitcoin hypotheses, that expressly deny the assumption. That the rate of profits generated by other factors will ever outrun the rate of gains. Provided by correlation in the near future. Take, for example, a variety of distinct Bitcoin concepts that have been offered.
Economic experts argue that, in the case of bitcoin. The underlying mathematical principles of falling supply in the face of increasing demand. Provide a de facto guarantee of higher prices in the future. But fiat currencies do not provide this guarantee.
You have a situation that is still in place today if you take into account the Bitcoin continuous output. Schedule as well as the growing number of wallet firms that have emerged. Despite the fact that the price of Bitcoin is now declining in the near term. The current scenario remains unchanged.
According to data from cryptocurrency tracking website Santiment, on the other hand. The decline that began in November has not dimmed the enthusiasm of individuals. Who have substantial cryptocurrency holdings. The decline in value that began in November. On the other hand, has not tempered the enthusiasm of individuals. Who have a smaller amount of cryptocurrency in their possession.