May 28, 2020 Goldman Sachs rejects the notion that cryptocurrencies are an asset class.

In an investor call on Wednesday, Goldman Sachs, the international investment bank made the case that cryptocurrencies should not be considered an asset class. Rather than discuss the potential value differentiators between different types of cryptocurrency, the bank stated that their inability to earn and distribute cash flow, combined with their volatility undermines the case for them being considered an asset class. Beyond this, the two speakers, Jason Furman, Professor of the Practice of Economic Policy at Harvard Kennedy School, and Jan Hatzius, Head of Global Investment Research at Goldman Sachs argued that cryptonetworks’ capacity to fork undermines the thesis that they offer scarce assets.