‘Goldie’s’ Boss says, “Keep an open mind on Bitcoin”

‘Goldie’s’ Boss says, “Keep an open mind on Bitcoin”

‘Goldie’s’ Boss says, “Keep an open mind on Bitcoin”

$BTCUSD, $GS, $JPM

Goldman Sachs Group Inc. (NYSE:GS) CEO Lloyd Blankfein said he is keeping an open mind on Bitcoin after a media report that the investment bank was exploring a new trading operation dedicated to cryptocurrencies.

Still thinking about . No conclusion – not endorsing/rejecting. Know that folks also were skeptical when paper money displaced Gold.

 “Still thinking about #Bitcoin. No conclusion – not endorsing/rejecting. Know that folks also were skeptical when paper money displaced gold,” Mr. Blankfein tweeted Tuesday.

The plan is in early stages and may not proceed, the WS-T report on Monday, citing people familiar with the matter.

Blankfein’s tweet is in sharp contrast to comments made by JPMorgan Chase & Co (NYSE:JPM). CEO Jamie Dimon, who called Bitcoin a “fraud.”

Bitcoin is a digital currency that enables individuals to transfer value to each other and pay for goods and services bypassing banks. The market is fraught with volatility, with bitcoin prices topping nearly $5,000 in early September and then declining sharply after Chinese authorities said they would ban the process of raising funds through launches of token-based digital currencies.

 Speaking at a bank investor conference in New York last month, Mr. Dimon said, “The currency is not going to work. You can’t have a business where people can invent a currency out of thin air and think that people who are buying it are really smart.”

“It is worse than tulips bulbs,” Mr. Dimon said, referring to a famous market bubble from the 1600’s.

Goldman’s arch rival Morgan Stanley spoke in favor of the currency, with CEO James Gorman calling it “more than just a fad.”

Former Fortress Investment Group LLC executive Mike Novogratz is also starting a $500-M hedge fund to invest in digital currencies like bitcoin.

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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