According to CryptoPotato, Bitwise CIO Matt Hougan defended the value of Bitcoin on Wednesday, responding to a Goldman Sachs executive who expressed skepticism about the cryptocurrency. Sharmin Mossavar-Rahmani, the chief investment officer of Goldman Sachs' Wealth Management unit, stated that she does not believe in crypto, even after the launch of Bitcoin spot ETFs in January. Mossavar-Rahmani argued that it's difficult to assign any value to Bitcoin as it lacks intrinsic dividends, cash flows, or earnings. Her views align with other crypto skeptics like Warren Buffett and Vanguard, who have denied their clients access to several Bitcoin spot ETFs launched in January.
Hougan countered these claims, arguing that Bitcoin's value comes from its ability to store wealth outside of the fiat system. He stated that the concept that one cannot pay a fee to access this service, but must own Bitcoin, is what confounds traditional financial models. He also noted that financial advisors are slowly warming up to crypto, despite questions about Bitcoin's lack of cash flows.
Anthony Pompliano, founder of Pomp Investments, also criticized Goldman Sachs for denying the legitimacy of crypto, which is now a $2.5 trillion asset class. He accused Mossavar-Rahmani of claiming to be smarter than the market. Mossavar-Rahmani also criticized crypto for being a tool of illicit activity, a claim often doubted by skeptics including SEC chairman Gary Gensler and senator Elizabeth Warren. The U.S. Treasury Department has stated that fiat currency remains a more popular tool for illicit activity than crypto.