Goldman Sachs is Suddenly Betting on Bitcoin, What Does it Mean for Gamblers?

Is Goldman Sachs getting into Bitcoin

Goldman Sachs has a checkered history with Bitcoin. Not because of any perceived market manipulation or mass hacking scheme, but because the investment bank seems to go back and forth about whether or not the project itself is an asset worth investing in.

Is it a coincidence that with the market currently experiencing a bull run, Goldman Sachs might actually be on board with cryptocurrency? And what does it mean for gamblers?

Putting the Goldman Sachs vs. Bitcoin story into perspective might help answer both questions.

The Goldman Sachs Perspective in 2017

Anybody who got into Bitcoin in 2017 probably remembers the epic bull run that led the cryptocurrency to net a value of nearly $20,000 USD per Bitcoin. It was around that time that Goldman Sachs scored points with crypto enthusiasts, openly discussing the fundamental value of the project along with, well, many other institutions at the time.

The Goldman Sachs Perspective in May

Here we are in the present day at the globe dealing with coronavirus and its economic implications and Goldman Sachs is releasing a report listing several reasons why investors shouldn’t necessarily consider Bitcoin or any other digital asset as an asset class.

That really rubs a lot of blockchain enthusiasts the wrong way. And yet, in the midst of all this, Goldman Sachs is following the footsteps of JP Morgan (another bank that didn’t like Bitcoin once upon a time), and hiring a new head of global digital assets. So now it appears that Goldman Sachs is the next major bank to say one thing and do another.

What is Goldman Sachs Actually Doing?

The new boss’s name is Matthew McDermott. He’s now openly stating that the bank is looking into the commercial viability of a potential Goldman Sachs digital commercial token. He’ll be working alongside JP Morgan’s head of digital asset strategy. The company has poached that individual from JP Morgan because he played a big role in creating the JPM token.

These moves speak to a larger principle that happens with almost all technologies that people are afraid will disrupt their way of doing things. Blockchain enthusiast and thought leader Andreas Antonopoulos likes to frame it in the famous words of Mahatma Gandhi, who once said, “First they ignore you, then they laugh at you, then they fight you and then you win.”

Antonopoulos has believed for a long time that Bitcoin is at the stage of being fought by every major institution that is threatened by the potential for a mass decentralization of people’s money.

As individual Bitcoiners, it remains to be seen how many major institutions will actually use a coin developed by a central bank, but even then, at the end of the day those coins will exist to save these banks money on fees, not to revolutionize the world of personal finance.

So What Does This Mean for Gamblers Like You?

The institutional adoption of Bitcoin and other cryptocurrencies is another step along the way to riches for gamblers. The question is, can you manage your bankroll for long enough and grow it over a sustained period of time so that you can actually profit in the long run?

To say the least, without having to pick the right number at the roulette table or pick the right team to win the game, the best bet of all is to hold onto some of your Bitcoin and let the price appreciation make you a winner the long run. The fact that Goldman Sachs says one thing about Bitcoin and then gets involved in establishing its own digital currency is a way of hedging against potential loss. Do the same thing as a gambler and if you still have your bankroll growing a few years, you’ll win both on your wagers and the price appreciation of Bitcoin.

Jack Choros byline

Jack Choros

Jack first invested in Bitcoin in 2016 and continues to gamble with it to this day. He loves the Toronto Raptors as much as he loves cryptocurrency. Jack’s work has appeared on ESPN Radio, Yahoo Sports, OddShark.com and many cryptocurrency related publications, namely BTCGG.com.

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