Abdulkarim Abdulwahab
David Solomon, the CEO of Goldman Sachs, a leading global investment banking firm, has suggested that Bitcoin could indeed serve the role of a store of value.
Solomon voiced this sentiment during an interview with CNBC TV on Tuesday, responding to questions from correspondent Andrew Ross Sorkin.
Sorkin asked Solomon to comment on Bitcoin’s evolving status, noting 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 clarified that he has never taken a definitive stance on whether Bitcoin will endure. He reiterated his view that Bitcoin remains a speculative investment, claiming it lacks a clear use case.
Regarding the technology behind Bitcoin, Solomon expressed admiration, describing it as “super interesting.” He emphasized its potential for digitalization within the financial system to reduce friction.
While the Goldman Sachs CEO appreciates cryptocurrencies’ potential to reduce friction in the global financial system, he avoids focusing on their price movements. He noted that he does not dedicate significant attention to predicting whether BTC will reach $70,000 or $120,000.
There Could be a Store of Value Case for Bitcoin
Meanwhile, the CNBC correspondent asked Solomon if Bitcoin might develop a role similar to a gold reserve, specifically questioning whether it represents a store of value use case. Solomon responded affirmatively saying, “There very well could be a store of value case.”
However, he clarified that he has never been a strong advocate for gold. Reflecting on a long-term perspective, Solomon noted that historically, investments in gold have generally performed well over 25 to 50-year periods. With Bitcoin’s performance over the last decade, he believes it fits the context of a store of value.
Notably, a historical chart comparing the 13-year performance of global investment instruments alongside Bitcoin shows that BTC greatly outpaces traditional rivals like gold and stocks. For instance, Bitcoin’s cumulative return since 2011 amounts to a staggering 18,881,969%.
Meanwhile, gold recorded a 59% growth over the same period, according to a chart shared by MicroStrategy Chairman Michael Saylor.
Financial Leaders Endorsing Bitcoin
Overall, the Goldman Sachs CEO 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.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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