Recently, a Goldman Sachs (Goldman) executive struggled to explain the value of Bitcoin during an interview. Matt Hougan, chief information officer of Bitwise, subsequently explained the value of Bitcoin.

Goldman Sachs believes that Bitcoin has no intrinsic value, but Bitwise explains that Bitcoin provides value that nothing else can.

Sharmin Mossavar-Rahmani, chief investment officer at Goldman Sachs’ wealth management unit, said she was still not a “believer” in cryptocurrencies even after the launch of a bitcoin spot ETF in January.

Why Goldman Sachs Still Rejects Cryptocurrency

According to the Wall Street Journal, the executive claimed that it is difficult to assign any value to Bitcoin because it lacks any inherent dividends, cash flow or earnings.

"We don't see it as an investment asset class. We don't believe in cryptocurrencies," she said.

Sharmin’s views echo those of other cryptocurrency skeptics such as Warren Buffett, as well as Vanguard, which refused to give clients exposure to several bitcoin spot ETFs launched in January.

The largest of these ETFs are launched by rivals BlackRock and Fidelity, which are more bullish on Bitcoin as "digital gold" and a superior form of currency. To date, these ETFs have attracted $12 billion in net inflows, and financial platforms that were initially closed to these products, such as Merrill Lynch, are now also opening up.

Last month, Bitwise's Hougan said financial advisors were gradually embracing cryptocurrencies, but questions about Bitcoin's "lack of cash flow" remain. Responding to Goldman Sachs's claims on Wednesday, Hougan argued that Bitcoin's value comes from its ability to store wealth "outside the fiat currency system."

"What confuses people... and the pattern on Wall Street... is that you can't pay to get this service. The only way is to own Bitcoin," he wrote.

Ignoring the evidence

Anthony Pompliano, founder of Pomp Investments, also criticized Goldman for denying the legitimacy of cryptocurrencies, which have become a $2.5 trillion asset class.

"Sharmin basically claims she's smarter than everyone else and she's smarter than the market. It's kind of crazy to think that, but even crazier to say it publicly to the Wall Street Journal," he said on Twitter.

Sharmin also criticized cryptocurrencies as an illegal activity, a claim often challenged by skeptics such as SEC Chairman Gary Gensler and Senator Elizabeth Warren.

According to the U.S. Treasury Department, fiat currencies remain a more popular vehicle for illicit activities than cryptocurrencies. #高盛  #比特币