Goldman Sachs just made new enemies in the world of cryptocurrency.
On Wednesday, the bank released a report that outlined five reasons that crypto is not an asset class or a suitable investment, drawing the ire of those that support the digital currency.
“We believe that a security whose appreciation is primarily dependent on whether someone else is willing to pay a higher price for it is not a suitable investment for our clients,” said Goldman.
The bank also called out cryptocurrency’s popularity with hedge funds, saying “while hedge funds may find trading cryptocurrencies appealing because of their high volatility, that allure does not constitute a viable investment rationale.”
It didn’t sit well with supporters of cryptocurrency. The Winklevoss twins, who co-founded Gemini, a cryptocurrency exchange platform, responded with vocal backlash to the report.
“Hey Goldman Sachs, 2014 just called and asked for their talking points back,” Cameron Winklevoss said in a tweet.
His brother, Tyler Winklevoss, also joined in the fray, tweeting, “the more I think about it, the Goldman report is probably a head fake.”
In addition, Goldman compared crypto’s popularity and epic 2017 rally to Dutch tulip mania, which occurred in the 17th century and is one of the most famous examples of a speculative bubble.
“Goldman Sachs served a cold dish to the crypto community, which was largely expecting them to come out with a bullish call on the world’s number one digital asset,” Mati Greenspan, founder of Quantum Economics, wrote in a note, Bloomberg reported.
He continued: “Perhaps Goldman is just trying to jawbone Bitcoin to buy more for themselves at a cheaper price. Who knows?”