The Wall Street banks JPMorgan and Goldman Sachs discourage their customers from investing in cryptocurrency, said Adam Pokornitsky, a partner in digital asset management company Digital Asset Investment Management.
I have a client who was ready to buy #bitcoin & after talking to his Advisors at JPM & GS told me he’s not interested anymore. I asked what they said & instead of answering, he asked me to explain in one sentence what the benefits are to buying BTC now in terms of proven results.
— Adam Pokornicky (@callmethebear) April 30, 2020
One of Pokornicky’s clients was going to buy bitcoin, but after a conversation with consultants from JPMorgan and Goldman Sachs, he stated that he was no longer interested in the purchase.
Pokornicky noted that the purchase and storage of bitcoin demonstrated profitability for 3853 days out of all 4134 days, that is, for more than 93% of the time. In addition, the value of the first cryptocurrency is not tied to the dollar, and its price is set solely on the basis of supply and demand.
“Based on modern portfolio theory and considering an optimal portfolio, any portfolio with many assets, including at least 1-10% of bitcoin, showed better absolute risk-adjusted return than portfolios without it,” he wrote.
Recall that JPMorgan and Goldman Sachs have long been exploring the possibilities of working in the cryptocurrency space themselves. The latter said last year that it intends to “move further than ever” in working with digital assets.