Trader Top 9: Goldman Sachs Says Bitcoin is a New Asset Class

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This is a big week for the crypto industry as one of the biggest events of the year, Consensus 2021, has been taking place.  Lots of news has been coming from the event including the revelation that one of the largest money managers in the world now owns bitcoin.  Consensus wasn't the only thing happening this week, however.  Goldman Sachs, one of the largest banks in the world, now considers bitcoin an asset class.  Bitcoin has certainly come a long way over the past 10 years.

9. One of the big debates lately has been about how much energy bitcoin consumes.  In fact, energy consumption was the reason why Tesla decided to stop accepting bitcoin as a payment method.  Fortunately, there is now a mini documentary, which helps to lay out the facts for those not familiar with the energy debate.  

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8. Energy hasn't been the only FUD plaguing bitcoin of late.  The new Treasury Secretary, Janet Yellen, has repeatedly made the claim that bitcoin is "often" used for illicit purposes.  Although that assertion has been proven false, it never hurts to continue speaking about what is actually true.  As Nic Carter points out in the video below, the US Dollar (the world's reserve currency), is used far more often for illicit purposes than bitcoin is.

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7. The last few weeks have been frustrating for crypto investors because of the seemingly endless stream of FUD that has circulated.  In addition, Elon Musk has served as an annoyance with his constant flip flops.  Earlier this year Michael Saylor managed to convince Elon to buy some bitcoin.  I wonder if Saylor is now regretting that decision.

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6. Let's put aside the FUD for now and focus on some of the more positive developments that took place this week.  Bitcoin is king.  You've heard that phrase time and time again.  And although still true, Ethereum's volume has been outpacing that of bitcoin over the last month.  As a reminder to all of our customers, the ETH/BTC trading pair is now available on our platform.

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5. One of the big reasons for Ethereum's volume surge has been the growth of decentralized exchanges such as Uniswap.  Alexander Osipovich wrote a great piece for the Wall Street Journal on Uniswap's attempt to dethrone Coinbase.  For those interested, we also have a blog up on our site that compares Coinbase Pro and Uniswap.  

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4. Of course, DEXs only partially help to explain Ethereum's volume surge.  The other reason (and perhaps primary reason) is that the entire DeFi space continues to grow at an incredible pace.  In fact, DeFi is becoming so popular that AAVE, MKR, UNI, and YFI are now available for trading on our platform.  Our customers can continue to expect more coin listings in the near future.

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3. Although Ethereum is having a great run, let's not forget that bitcoin's market cap is roughly $730 billion compared to $320 billion for Ethereum.  So, while we can appreciate what Ethereum is and what it can become, let's remember that bitcoin is still king. 

In light of that, let's take a moment to have a belated celebration for Bitcoin Pizza Day, which took place on May 22.  As Nathaniel points out, Bitcoin Pizza Day is not about Laszlo Hanyecz paying 10,000 bitcoins for two pizzas in 2010.  Rather, it's the celebration of the first time that the marketplace priced bitcoin.  Laszlo, we thank you for your sacrifice!

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2. Consensus 2021, one of the biggest crypto events of the year, started the week off with a bang.  Ray Dalio, the founder of Bridgewater Associates, acknowledged that he now owns bitcoin.  We've previously covered that Dalio was interested in crypto and now it's official.  Welcome to the party Ray!

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1. In March, Goldman Sachs revealed that it was going to relaunch its cryptocurrency trading desk.  And now, Goldman Sachs has just said that bitcoin is a new, investable asset class.  With Goldman Sachs firmly behind bitcoin, the future certainly looks brighter than ever before.

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🔥 Cove Markets now has a Telegram group and a Reddit community page.  Please stop by and let us know what you thought about this week's Trader Top 9! 🔥

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