The Wall Street giant, Goldman Sachs has reportedly been working on a new sector that would be dedicated to investing in Bitcoin. This new brand operation may be great for those trading bitcoin but how will it affect the market as a whole?
Regardless of what some large banks think, bitcoin has become a big player in the financial industry and does not appear to be slowing down anytime soon. This is a reality that some are refusing to face, but others are attempting to take advantage of.
After China put a ban on not only cryptocurrency exchanges, but the use of initial coin offerings or ICOs for raising capital, the coin quickly dropped to around $3,000 before driving up over the course of this month to cover $4,000. It is likely that if no news comes out showing the coin in a negative light, it could reach a new high very soon.
Even with news coming out of South Korea, attempting to ban ICOs as well, the price did not change. Although selling the currency is not the best idea, it has been proven that buying the dip in bitcoin may be the best way to make a profit.
If Goldman decides to open a sector that is dedicated to Bitcoin, it would help to give a sense of legitimacy to the currency that it has been lacking in recent months, as well as hopefully helping to bump the price up.
Since Goldman makes most of its money off of trading, the company has been struggling in recent months with dropping investment revenues and so on.
The hopes are high that this will not be the last news of big banks deciding to get in on the cryptocurrency market. This could help to not only legitimize the industry, but to ensure its place in the future of the world economy.