Goldman Sachs reported that Bitcoin may become the new currency of the troubled economy

nBankruptcy comment: Goldman Sachs Group, as the world’s leading large financial institutions, bitcoin and blockchain and other new technologies have been very concerned about the conduct of more research. Recently, two Goldman Sachs analysts released a new report saying that Bitcoin may play a role in the trapped economy as a viable currency. However, the report also pointed out that the current cryptocurrency market is a bit confusing and lacks an environment that allows cryptocurrencies to do so.n
nTranslation: Inan
A recent Goldman Sachs report highlights the fact that bitcoin and cryptocurrencies can function as a form of currency in trapped economies.n
The report, released Wednesday, by Zach Pandl and Charles Himmelberg, analysts at Goldman Sachs, highlighted the use of the dollar by other countries as a means of storing and exchange of value for money that can be used across borders.n
The dollar has been performing well in meeting this demand, but it is not necessarily the best currency in all circumstances.n
The two analysts explained:n
n”Cryptocurrencies, such as bitcoin, may offer viable alternatives to financial systems or countries that are under-supplied with traditional money services.”n
nHowever, according to the report, cryptocurrencies are not necessarily suitable for this purpose now, especially in the current turmoil environment caused by speculation and price fluctuations.n
Pandla and Himmelberg wrote:n
n”Our assumption is that the long-term crypto-monetary return should equal (or be slightly below) the increase in global real output.”n
nThey added that national issuance of cryptocurrencies should be considered as assets similar to gold or other metals.n
Although no country has really launched its own cryptocurrency, some governments are already working on it.n
It is worth noting that Venezuelan President Maduro announced last month that it will create its own token to help its economy. However, Venezuelan officials are strongly opposed to this idea.n

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