Goldman Sachs analyst: Bitcoin technology will change asset ownership

     Regarding the developing topic of Bitcoin and blockchain technology, an analyst from Goldman Sachs, a global investment banking giant, has just expressed new views.

     In a podcast released this summer and reported by The New York Times, Global Investment Research analyst Heath Terry highlighted the advancements in Bitcoin and blockchain technology, praising the distributed ledger technology as one that will have a huge impact on the transfer of assets and ownership.

     “We are the first to hit the ground running in tracking how companies are using blockchain technology,” Terry said. “It’s very fascinating at this early stage, and blockchain technology will definitely change the way we think about asset ownership in the future. ”

     The company recorded the "Goldman Sachs Exchange" podcast series in June and released it in late July, aiming to promote "Future of Finance", an annual research report produced by the Goldman Sachs research team that discusses breakthrough financial technologies and concepts.

     The three-part podcast "The Future of Finance" is Goldman Sachs' latest report on the potential use of Bitcoin and blockchain technology for asset transfers. Previous studies have looked at blockchain technology for remittances and between merchants. In addition, the podcast discusses popular trends in finance, including P2P lending, crowdfunding and mobile payments, with a focus on the financial habits of millennials.

     Interestingly, Terry and analyst Ryan Nash refer to this group as credit card and debt avoiders, and they believe these consumers are well aware of the costs of financial products, including the associated transaction fees.

Bitcoin Application

     In the podcast, Terry believes that solving the various problems encountered by Bitcoin is actually promoting blockchain technology, although he is very negative about the feasibility of this application.

     Terry hinted that the price of Bitcoin is very volatile compared to legal tender, and he believes this is the main reason preventing Bitcoin from becoming a circulating currency.

     “The volatility of the bitcoin price scares a lot of people, and there are phases where it looks like the price of bitcoin can only go up, which is great,” he said. “But in reality, it goes up, it goes down, and then it goes up again. For a lot of people, having a safe currency, which is what bitcoin is supposed to be, means having a safe store of value that you can transfer value to.”

     Terry further pointed out that Bitcoin is still unable to compete with traditional payment methods, and its main use cases can also be achieved by other traditional technologies.

     However, he said he is very optimistic that the value proposition of Bitcoin or blockchain-based systems for digital currencies will eventually succeed. "Although Bitcoin will mature over time, there may be a lot of changes in the system. As Bitcoin matures, you may see more use cases."