HOUSE_OVERSIGHT_025676.jpg
1.17 MB
Extraction Summary
1
People
8
Organizations
0
Locations
0
Events
1
Relationships
5
Quotes
Document Information
Type:
Presentation slide / financial analysis report
File Size:
1.17 MB
Summary
A Goldman Sachs Investment Management Division presentation slide (page 13) analyzing Bitcoin's inefficiency as a currency. The document argues that Bitcoin has high transaction fees (~$3.40), slow processing times, and low merchant acceptance compared to Visa/Mastercard, while also noting IRS tax implications. The document bears a House Oversight Committee Bates stamp (025676), suggesting it was part of a larger document production to Congress.
People (1)
| Name | Role | Context |
|---|---|---|
| Daniel Heller | Author/Researcher |
Cited in footnote as author of 'Do Digital Currencies Pose a Threat to Sovereign Currencies and Central Banks?'
|
Organizations (8)
| Name | Type | Context |
|---|---|---|
| Goldman Sachs |
Investment Management Division created the presentation
|
|
| Visa |
Used as a benchmark for transaction speed and acceptance
|
|
| MasterCard |
Used as a benchmark for transaction speed and acceptance
|
|
| IRS |
Internal Revenue Service mentioned regarding tax implications of crypto
|
|
| PIIE |
Peterson Institute for International Economics (associated with Daniel Heller)
|
|
| Bloomberg |
Listed as a source for the data
|
|
| Cryptocompare.com |
Listed as a source for the data
|
|
| House Oversight Committee |
Implied by the Bates stamp 'HOUSE_OVERSIGHT'
|
Relationships (1)
Goldman Sachs cites Heller's paper in footnote 1.
Key Quotes (5)
"Bitcoin is an Inefficient Medium of Exchange"Source
HOUSE_OVERSIGHT_025676.jpg
Quote #1
"Processing is expensive. The average transaction cost is ~$3.40"Source
HOUSE_OVERSIGHT_025676.jpg
Quote #2
"Processing is slow. Transaction processing typically takes a minimum of 10-20 minutes, but can take up to 18 hours"Source
HOUSE_OVERSIGHT_025676.jpg
Quote #3
"Bitcoin is not broadly accepted."Source
HOUSE_OVERSIGHT_025676.jpg
Quote #4
"A mere 9k merchants accept bitcoin, compared to the 37mil that accept Visa and MasterCard"Source
HOUSE_OVERSIGHT_025676.jpg
Quote #5
Full Extracted Text
Complete text extracted from the document (1,225 characters)
Do Cryptocurrencies Meet the Criteria for Currencies?
1) Bitcoin is an Inefficient Medium of Exchange
1) Bitcoin is an Inefficient Medium of Exchange
Investment Management Division
Goldman Sachs
Goldman Sachs
Average Transaction Fees (US$ Monthly Average)
[Chart showing graph line rising from approx 0.3 in Jan-17 to peak over 5 in Sep-17, ending at 3.4 in Nov-17]
$ Per Transaction
6
5
4
$3.4
3
2
$2.1
1
0
Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17
[Chart showing graph line rising from approx 0.3 in Jan-17 to peak over 5 in Sep-17, ending at 3.4 in Nov-17]
$ Per Transaction
6
5
4
$3.4
3
2
$2.1
1
0
Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17
Processing is expensive. The average transaction cost is ~$3.40, rendering transfer of small fund balances uneconomical.
Processing is slow. Transaction processing typically takes a minimum of 10-20 minutes, but can take up to 18 hours if the network is congested (Visa and Mastercard authorize transactions in ~20 milliseconds).
Bitcoin is not broadly accepted. A mere 9k merchants accept bitcoin, compared to the 37mil that accept Visa and MasterCard, and the billions of merchants and people globally that accept US dollars.¹
Further, the IRS considers all cryptocurrency gains a taxable event (including for de minimis purchases).
(1) Do Digital Currencies Pose a Threat to Sovereign Currencies and Central Banks?, Daniel Heller, PIIE.
Source: Investment Strategy Group, Bloomberg, Cryptocompare.com.
13
HOUSE_OVERSIGHT_025676
Source: Investment Strategy Group, Bloomberg, Cryptocompare.com.
13
HOUSE_OVERSIGHT_025676
Discussion 0
No comments yet
Be the first to share your thoughts on this epstein document