HOUSE_OVERSIGHT_025677.jpg
1.06 MB
Extraction Summary
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Document Information
Type:
Presentation slide / financial analysis
File Size:
1.06 MB
Summary
A Goldman Sachs Investment Management Division presentation slide discussing why Bitcoin is an unreliable unit of account. It uses the purchasing power of Bitcoin relative to Bosch dishwashers between January and November 2017 to illustrate 'severe deflation' of the currency, arguing that this volatility encourages hoarding rather than spending. The document bears a House Oversight Committee Bates stamp (HOUSE_OVERSIGHT_025677).
Organizations (5)
| Name | Type | Context |
|---|---|---|
| Goldman Sachs |
Investment Management Division created the presentation
|
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| House Oversight Committee |
Implied by Bates stamp 'HOUSE_OVERSIGHT'
|
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| Bosch |
Products used as a unit of value comparison
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| Bloomberg |
Cited in footer
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| Cryptocompare.com |
Cited in footer
|
Key Quotes (2)
"Bitcoin’s rapid appreciation makes it an unsatisfactory candidate as a unit of account."Source
HOUSE_OVERSIGHT_025677.jpg
Quote #1
"In deflationary environments, people hoard their money in order to buy goods more cheaply at a later date, which has prompted most people to hoard their bitcoin."Source
HOUSE_OVERSIGHT_025677.jpg
Quote #2
Full Extracted Text
Complete text extracted from the document (937 characters)
Do Cryptocurrencies Meet the Criteria for Currencies?
2) Bitcoin is an Unreliable Unit of Account
2) Bitcoin is an Unreliable Unit of Account
Investment Management Division | Goldman Sachs
Illustrative Pricing: US$ vs. Bitcoin as a Unit of Account
[Graphic of 1 Bosch Dishwasher]
January 2nd 2017:
1 Bitcoin =
$1,012 =
1 Bosch Dishwasher ($1,079)
January 2nd 2017:
1 Bitcoin =
$1,012 =
1 Bosch Dishwasher ($1,079)
[Graphic of 6 Bosch Dishwashers]
November 14th 2017:
1 Bitcoin =
$6,590 =
6 Bosch Dishwashers ($6,474)
November 14th 2017:
1 Bitcoin =
$6,590 =
6 Bosch Dishwashers ($6,474)
▪ Bitcoin’s rapid appreciation makes it an unsatisfactory candidate as a unit of account.
▪ In January, one could have purchased a dishwasher for one bitcoin. Today, it would cost 1/6th a bitcoin to buy the unit, implying severe deflation over the past several months.
▪ In deflationary environments, people hoard their money in order to buy goods more cheaply at a later date, which has prompted most people to hoard their bitcoin.
Source: Investment Strategy Group, Bloomberg, Cryptocompare.com.
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