Yesterday, influential multinational finance company Goldman Sachs made headlines when it boldly declared that most Cryptocurrencies would fall to zero. While many in the Crypto community criticized the statement, calling it just the latest example of the old guard fearing change. It certainly does come at an uncertain time when even the truest of believer’s faith is being tested in the wake of ever falling prices.
What many seemed to ignore in the wake of this prediction, was that Goldman Sachs might be playing a more intentionally manipulative game than most people seem to be giving them credit for. Instead of merely warning people about the dangers of investing in Crypto, what if the company was actually working to prepare the market for its arrival. Low prices may be bad news for the thousands of early adopters who have watched their fortunes get erased in the past month, but for those only just now preparing to enter the space, it’s looking awfully like a buyers’ market.
While taken at face value the comments made by the companies’ head of Investment Research, Steve Strongin, paint a rather gloomy future for Cryptocurrencies as a whole. There are legitimate reasons to believe that Goldman Sachs might just be working to soften up the market even further, before their own entry into it later this year. After all, it wasn’t long ago that The Wall Street Journal broke the story of Goldman quietly setting up a new trading operation to get involved in Bitcoin and other digital currencies.
Further proof of Goldman’s long-term Crypto investment plans came only two months later when Bloomberg news broke their own story on the same topic. Suggesting that the company was working behind the scenes to set up a digital currency trading desk. Bloomberg even asserted to having multiple high ranking and reliable sources backing up this claim. In that story, published less than two months ago, it was suggested that Goldman was hoping to have their new Crypto trading desk operational by the end of June if not even earlier.
So while some may suggest this new statement merely implies that the company has altered course and changed their plans regarding digital currencies. I think there is reason to believe Goldman Sachs is instead just using its mighty influence to lower prices down even further before they buy in big. After all, what could more instantly rebound the markets, then a major buy-in from a respected finance company like Goldman Sachs? Time that with an updated and more optimistic memo from the company regarding digital currency, which they will inevitably release after their purchase, and it’s easy to imagine how the company might just be playing us all for suckers.
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