CRYPTO: Bitcoin is officially a new asset class__ Goldman Sachs

A global head of digital assets in American multinational investment bank and financial services company, Goldman Sachs, Mathew McDermott has described Bitcoin as a new asset, adding that it is time to take bitcoin way more seriously as an investable asset.

“Bitcoin is now considered an investable asset. It has its own idiosyncratic risk, partly because it’s still relatively new and going through an adoption phase,” said McDermott, in a new piece of research.

“And it doesn’t behave as one would intuitively expect relative to other assets given the analogy to digital gold; to date, it’s tended to be more aligned with risk-on assets. But clients and beyond are largely treating it as a new asset class, which is notable—it’s not often that we get to witness the emergence of a new asset class.”

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In truth, if bitcoin is to be considered a new asset class it has a lot in common with one area in the stock market: often very volatile penny stocks that see wild gyrations on the tiniest bit of news.

You will recall that Bitcoin and other coins fell drastically following a statement by authorities in China last week Friday that it would be necessary to crack down on bitcoin mining and trading behavior to limit investment risks. Moreso, the FUD that Elon Musk tweets have created in recent times also add to the bearish market last week.

Despite Goldman’s rubber stamp of approval on bitcoin (BTC-USD) and other cryptocurrencies have traded anything like a typical stock of a credible company or bond in May.