Yes, it will be different between 1st world and 3rd world, but poor people will benefit more from Bitcoin than the traditional Fiat institutions in 3rd world countries. ^smile^
Topic: Goldman Sachs: Bitcoin Could Be Viable Money In Troubled Economies (Read 154 times)
You just have to smile when the corporate world comment on Bitcoin. It is as if they want to "box" or limit it for the consumers. They tell other people, what they think it should be. Bitcoin is carving it's own rules and do not need to be defined by Corporate slaves of the Fiat system.
Yes, it will be different between 1st world and 3rd world, but poor people will benefit more from Bitcoin than the traditional Fiat institutions in 3rd world countries. ^smile^
Yes, it will be different between 1st world and 3rd world, but poor people will benefit more from Bitcoin than the traditional Fiat institutions in 3rd world countries. ^smile^
January 13, 2018, 08:40:06 AM
Funny that Sachs seem to have changed its tune. It has become apparent by now that cryptos are not going away anytime soon and that they'd have to get into the action to stay relevant. Bitcoin will do the most in areas where the traditional banking system was not reliable or good enough for the demands. Bet these bankers would like to get in there now that they found it was possible.
January 12, 2018, 07:41:00 AM
From the "Bitcoin is useless" that we have been hearing for years from banks, governments and institutions, we are slowly changing mentalities in order to gain acceptance for the advantages of cryptocurrencies and how this can help different economies.
It's going to take a long time, probably years. If today Goldman Sachs says Bitcoin could be viable money in troubled economies (i.e. Venezuela, Greece, etc...) in a near future they will accept cryptocurrencies as "useful" and then will say "oh, we are going to use it".
We're going to see more and more countries with an economy in a serious trouble, it will be some other opportunities for cryptocurrencies to prove it's a valuable currency
Even if it's referring to the "developing countries", be sure it will be the case for others too....
It's going to take a long time, probably years. If today Goldman Sachs says Bitcoin could be viable money in troubled economies (i.e. Venezuela, Greece, etc...) in a near future they will accept cryptocurrencies as "useful" and then will say "oh, we are going to use it".
We're going to see more and more countries with an economy in a serious trouble, it will be some other opportunities for cryptocurrencies to prove it's a valuable currency
Even if it's referring to the "developing countries", be sure it will be the case for others too....
Quote
Goldman Says Cryptocurrencies May Succeed as Form of Real Money
Bitcoin may seem like a solution in search of a problem in the U.S., where transaction costs are already low and the dollar stable. But in developing countries, digital currencies could succeed as a real form of money, Goldman Sachs Group Inc. says.
Many currencies in sub-Saharan Africa have lost value due to high inflation and supply mismanagement. As a result, foreign money makes up more than 90 percent of deposits and loans in the Democratic Republic of the Congo, and Zimbabwe demonetized its currency in 2015. Bitcoin could also be useful in regions where governments impose strict rules on the use of traditional currencies from other countries.
“In recent decades the U.S. dollar has served its purpose relatively well,” Goldman Sachs strategists Zach Pandl and Charles Himmelberg wrote in a report Wednesday. But “in those countries and corners of the financial system where the traditional services of money are inadequately supplied, Bitcoin (and cryptocurrencies more generally) may offer viable alternatives.”
The report also warned that if digital coins become a widely used form of currency, investors shouldn’t expect the astronomical returns that have recently drawn unprecedented attention to the world of cryptocurrencies.
“Our working assumption is that long-run cryptocurrency returns should be equal to (or slightly below) growth in global real output—a number in the low single digits,” the strategists said. “Thus, digital currencies should be thought of as low/zero return or hedge-like assets, akin to gold or certain other metals.”
https://www.bloomberg.com/news/articles/2018-01-10/goldman-says-viability-of-crypto-is-highest-in-developing-world Bitcoin may seem like a solution in search of a problem in the U.S., where transaction costs are already low and the dollar stable. But in developing countries, digital currencies could succeed as a real form of money, Goldman Sachs Group Inc. says.
Many currencies in sub-Saharan Africa have lost value due to high inflation and supply mismanagement. As a result, foreign money makes up more than 90 percent of deposits and loans in the Democratic Republic of the Congo, and Zimbabwe demonetized its currency in 2015. Bitcoin could also be useful in regions where governments impose strict rules on the use of traditional currencies from other countries.
“In recent decades the U.S. dollar has served its purpose relatively well,” Goldman Sachs strategists Zach Pandl and Charles Himmelberg wrote in a report Wednesday. But “in those countries and corners of the financial system where the traditional services of money are inadequately supplied, Bitcoin (and cryptocurrencies more generally) may offer viable alternatives.”
The report also warned that if digital coins become a widely used form of currency, investors shouldn’t expect the astronomical returns that have recently drawn unprecedented attention to the world of cryptocurrencies.
“Our working assumption is that long-run cryptocurrency returns should be equal to (or slightly below) growth in global real output—a number in the low single digits,” the strategists said. “Thus, digital currencies should be thought of as low/zero return or hedge-like assets, akin to gold or certain other metals.”
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