The investment bank of white shoes Goldman Sachs admitted that Bitcoin and other digital currencies could succeed. Goldman's strategists wrote in a recent report:

"Over the last few decades, the US dollar has relatively fulfilled its purpose [But] in the countries and corners of the financial system where traditional money services are insufficiently provided, Bitcoin (and cryptocurrencies more generally) may offer viable alternatives. "

Nevertheless, the investment bank warns "Our working hypothesis is that long-run cryptocurrency returns should be equal to (or slightly lower than) the growth in aggregate real output – a figure in single digits – so digital currencies should be considered low-yielding or zero assets or hedging assets, similar to gold or certain other metals. "

Change of Tide

This is a remarkable change in agreement with the skepticism with which large banks and "traditional" investors have generally treated digital currency. JPMorgan Chase CEO Jamie Dimon called Bitcoin a fraud last year, while legendary billionaire investor Warren Buffett insists that Bitcoin is not money and that people should stay away. Similarly, hedge fund tycoon Ray Dalio rejects Bitcoin as a bubble.

Inordinate Importance

Goldman Sachs has a disproportionate influence in the world of finance and politics. Both The Independent and Al Jazeera refer to Goldman as the bank that controls the world. The Atlantic is only slightly more subtle, referring to the growing influence of Goldman Sachs in the US government under the name of "The Quiet Coup".

Similarly, the Huffington Post has written extensively on the "revolving door" between Goldman Sachs and the US government. The publication points out that two Goldman Sachs CEOs – Rubin and Paulson – served as US Treasury Secretary, and former CEO Jon Corzine became a US Senator. Other alumni of Goldman hold various positions throughout the government and finance.