Goldman Sachs caves: “BITCOIN is money”- wow

Source: https://www.forbes.com/sites/kenrapoza/2018/01/10/goldman-sachs-caves-bitcoin-is-money/#185caf7274b7
https://www.zerohedge.com/news/2018-01-10/goldman-explains-how-bitcoin-could-succeed-form-money

First of all ...Goldman doesn’t cave. They may be the ones driving this bus behind the scenes for all we know.

I read the headline of the article and I was “surprised”....shocked in a way. Here is Goldman Sachs, the largest or most powerful Investment Banker in the world suggesting Bitcoin could succeed as a form of money.

Of course we know that Goldman is opening it’s own crypto currency trading desk in June...so it is jumping in with both feet. When Goldman moves like this you have to realize the significance. Goldman is hired by “countries” to solve financial issues or to get financing deals done. They are the “whale”. Did you ever keep tabs of how many Presidential advisers or Federal Reserve alumni come from Goldman Sachs...you would be shocked.

Anyway, Goldman says that Bitcoin can become a “form” of currency. The word “form” being the operative word. As the chart shows below, there are various vehicles that can be used as money or money-like in they have status in today’s world. You can make that case for gold. Is Gold a form of money, sure it is. Same can be said for Bitcoin and it’s use cases will evolve with software improvements.

The article goes onto say in a “slight of hand way”, that the system such as it is today is not perfect. We know that Central Bankers need to support the bonds and stock market and right now we are in “bubble city” (me talking - not Goldman). Interest rate, bank failure, US Dollar no longer global reserve — pick your excuse for the system radically changing as these bubbles are popped.

And when you look at the “size of the assets” that will be finding a new home, if cryptos were to get a mere 5%...it would move cryptos in ways you could not imagine. As the chart above shows, you are talking hundred of $trillions of dollars.

It’s true that Bitcoin and others are much more volatile than all other assets and forms of money as the chart suggests below. But if you could imagine BTC or LTC or other in 3-4 yrs — name the price? Is it $500k, $1M — whatever it is — at that point is when when BTC or other volatility becomes quite small.
When a BTC or crypto price is $1,000,000 per coin and it moves $100 to 1000 /day...this is a tiny percentage movement.

And let’s not forget, crypto’s like BTC or LTC are deflationary and do rise with usage because there is scarcity. There will be many choices for consumers to use in the future. My guess is you want to use the coin that holds it’s value and used by many.

Appreciate your comments...