This article studies the case where Wall Street’s noted bank, Goldman Sachs decided to open a Bitcoin-trading platform after being inundated by requests to do so from its clients. After a brief discussion about how Goldman will do so, we talk about the future effects of Goldman’s decision. The most important point to note here is that Goldman’s decision could pave a new path for the entire crypto industry, and it is easy to imagine a cryptocurrency-accepted future which is by no way a distant dream at all.

While the rumours about the Bitcoin “bubble burst” is making headlines in many media channels, there are some inspirational stories for the virtual currency lovers. One of these is while most banks try to keep a distance from Bitcoin, one of the most trusted Wall Street banks is making way to steer in the right direction. Whether this is the end of a negative era for Bitcoin or a start of the new future where cryptocurrencies will be a real thing is the question that is being asked by most of the analysts.

Goldman Sachs is not a bank that would decide without analysing the facts, and its decision to open a Bitcoin trading platform, therefore, created some real ripples in the finance ecosystem globally. The New York Times reported on May 2 that Goldman Sachs believed Bitcoin is ‘not a fraud’ and looking at its popularity which is growing beyond what anyone can expect, the noteworthy bank decided to open a trading mechanism for its clients many of whom want to get into the cryptocurrency world.

Goldman will initially offer a variety of contracts with Bitcoin exposure in an aim to address the ever-growing and ‘inundating’ requests from its clients. While it is known to all that Bitcoin is slowly becoming a giant ROI-generator, most of the noted banks and governments have been sceptical about its validity. However, the advantages of dealing in the best cryptocurrency that runs on a technology called Blockchain that has some real positive benefits no one can ignore has started making some palpable effects in the financial ecosystem.

What does this milestone-making step taken by one of the world’s most reputed banks mean for the crypto community? As far as we can see, the scepticism existing around the use of Bitcoin that has the potential to make the finance world more agile and responsive is blurring at a rapid rate. Whether that can lead us to a more secure, bitcoin-accepted future is what we want to explore in this article.

Here’s what anyone with even a little sense of finance can make out of this revolutionary decision taken by Goldman.

The Beginning of New Future

As Spencer Bogart, a blockchain venture capitalist, believes, with Goldman accepting and starting dealing with Bitcoin, other banks will follow its move to open a bitcoin trading operation. He thinks that the Bitcoin ecosystem is now large enough not to be ignored by anyone, and there is a point in his belief. To support his point of view, Bogart points to the impressive numbers companies like Coinbase are generating, and it is no notion now that Bitcoin is the only financial tool that offered a return of more than 2000% in one year in 2017.

So, does this mean that a new financial world is about to begin within the foreseeable future? Yes if we have to believe Bogart. He says that once Goldman starts dealing with Bitcoin, other banks and financial organisations will follow suit. One of the major reasons for this to happen is because organizations like Goldman Sachs take decisions after thorough and detailed research and market analysis, and hence when they open their doors to Bitcoin, it must be a well-calculated strategy.

Goldman’s Bitcoin love is not a spontaneous decision tough. The process started from the bottom of the pyramid where the clients of the noted bank started taking enough interest in Bitcoin, and part of this happened because of the growth and influence of the crypto communities around the world. In fact, when Bitcoin was peaking at $19,500 in mid-December 2017, creating many new millionaires and a few billionaires as well, no individual with love for growing their wealth could ignore it.

The value of Bitcoin evidently took a nosedive in early 2018, but the interest it ignited in the minds of wealth-seeking people stayed intact, and the popularity and thereby the demand for Bitcoin-inclusion grew exponentially everywhere. Goldman could not ignore such a huge demand from its clients. Nonetheless, whatever the reason for Goldman to take Bitcoin seriously, the decision will start a new trend among fiat bigwigs to check the utility of cryptocurrencies, and that, in itself, is a signal of a new future.

Why Bitcoin cannot be stopped.

There is a very lucid and valid reason why Bitcoin’s acceptance is growing and why people want to deal with it. Firstly, Bitcoin is not like all other fiat currencies that are needed to be converted from one form to another (Foreign Exchange) while dealing with people from different geographies.

It does not seem to be very important at the outset, but as the digital payments and the need to deal with people from many parts of the world grows, using bitcoin will be a highly preferred choice due to its inherent benefits which include zero fees for any third party for transactions and the possibility to send money directly to someone preferred.

Nonetheless, as we can readily feel and see now, most of the financial decisions and transactions now take place digitally. As the globe gets more connected and needs to deal with digital money exchanges, it is cryptocurrencies that are the most compatible with the digital lifestyle. Fiat currencies will surely try to evolve, but the very demand of a truly digital currency that can match all the requirements for fast, easier and secure digital transactions will make Bitcoin and its gang more popular everywhere.

While Fiat money is good to keep in the pocket and use for local transactions, the complexity of converting it to other forms and the hectic procedure of managing it via highly costly third-parties make it unsuitable in a fast-paced, convenience-seeking foreseeable future. That is a reason why Bitcoin is spreading so fast, and this fact is proved by the unexpected decision made by Goldman Sachs.

Sure, there will be ups and downs on the path, but the sheer fact that Bitcoin is now getting into the mainstream is a reason to rejoice for every futuristic individual. We, however, want a more bitcoin-friendly world, and our nascent hopes have finally started getting materialised by Goldman’s decision.

Way to go Goldman; way to go Bitcoin.

Disclaimer

The views and opinions expressed here are solely those of the writer, Alina Vardanian, and may not reflect the opinions of CINDX. Every investment and trading move involves risk; you should conduct your own research when making a decision.

About CINDX

CINDX is an investment platform that allows individuals to combine several crypto exchange accounts into one trading terminal, and gives them the option to connect to the best managers without having to transfer their funds. Moreover, implementation of blockchain-based transactions will allow the trading history to be saved, and a rating system will be used to differentiate the successful managers from the less successful ones.

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