David Solomon, CEO of Goldman Sachs, has suggested that Bitcoin could indeed serve as a store of value. He voiced this sentiment during an interview with CNBC TV on Tuesday, responding to questions from correspondent Andrew Ross Sorkin.
Bitcoinâs Evolving Status
When asked about Bitcoinâs evolving status and endorsements from prominent political figures like former President Donald Trump and current efforts by Vice President Kamala Harris to engage with the crypto community, Solomon provided his perspective. He clarified that he has never taken a definitive stance on Bitcoin's long-term endurance but reiterated that Bitcoin remains a speculative investment with an unclear use case.
Admiration for Bitcoinâs Technology
Despite his cautious stance on Bitcoin as an investment, Solomon expressed admiration for the technology behind it, describing it as "super interesting." He emphasized its potential to digitalize the financial system and reduce friction. While he appreciates the potential benefits of cryptocurrencies in streamlining global finance, Solomon avoids focusing on price predictions, noting he does not spend significant time forecasting whether BTC will reach $70,000 or $120,000.
Bitcoin as a Store of Value
In response to a question about Bitcoin's potential role similar to a gold reserve, Solomon acknowledged, âThere very well could be a store of value case.â However, he noted that he has never been a strong advocate for gold. Reflecting on long-term investments, Solomon pointed out that historically, gold investments have performed well over 25 to 50-year periods. Considering Bitcoin's performance over the last decade, he believes it fits the context of a store of value.
A historical chart comparing the 13-year performance of global investment instruments alongside Bitcoin shows that BTC greatly outpaces traditional assets like gold and stocks. Bitcoinâs cumulative return since 2011 amounts to a staggering 18,881,969%, compared to goldâs 59% growth over the same period, according to a chart shared by MicroStrategy Chairman Michael Saylor.
Financial Leaders Endorsing Bitcoin
David Solomon joins the ranks of global financial leaders recognizing Bitcoin as a legitimate store of value. Earlier this month, Larry Fink, CEO of BlackRock, admitted that he was wrong during his days of Bitcoin criticism, now referring to Bitcoin as a legitimate financial instrument.
In summary, while the CEO of Goldman Sachs remains cautious about Bitcoin's speculative nature, he acknowledges its potential as a store of value and admires the underlying technology's capability to transform the financial system.
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