Goldman Sachs Note Says Bitcoin Is Too Volatile

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March 12 (Bloomberg) –- On today’s “The Roundup,” Julie Hyman, Trish Regan and Olivia Sterns wrap up the day’s top market stories on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)


The stories we will be talking about tomorrow before the open.

Let's talk about it .1 san.

One of our favorite topics.

A goldman sachs analyst is offering a in-depth analysis of bitcoin and the conclusion is that bitcoin will likely not work as a currency, but the ledger based technology that underlies it could hold promise.

This comes from different people inside goldman sachs in different asset classes.

Also, eric pozen are and various technology experts.

It sort of draws from in-house interviews with a number of different people, talking about the volatility, that that is a big problem for using it as a currency.

That is really the conclusion, it is too volatile.

They spoke with jeff curry, head of commodities at goldman sachs.

Very interesting, he was comparing it to gold.

One of the things that made gold so successful was the project ability of demand.

He know what things lead to a run-up in gold.

We have some ideas.

He have no idea what leads to a run-up in bitcoin.

There is also the idea of liquidity.

It is fascinating and true.

The technology behind this is pretty clear -- pretty cool.

I have argued with matt miller about this before.

There is an opportunity there for a mobile platform.

Mobile money is going to become increasingly something that dominates the marketplace.

However, you are right, if it is this volatile and there is no liquidity?

The other argument, the mobile payment, one of the advantages is that it is much cheaper than other modes of money transfer right now.

One of the arguments they make in the goldman sachs report is that the barrier for the current players in the market to make it cheaper is relatively low.

If google comes out and says they will do this in a way for you will not be charged exorbitant fees?

I have to say -- that is exactly what i said, between google wallet and apple looking at the space, square, this technology is going to become increasingly cheaper.

But no matter what we have, it looks like bitcoin was the catalyst.


There happened to be 1.9 5 trillion reasons for congress to overhaul the corporate tax code.

That is how much money u.s. multinationals have parked overseas outside the reach of u.s. taxes.

$206 billion have been added to their stockpile of profits last year.

Microsoft, apple, ibm, they added 18% of the total increase to this amount.

I mean, it is mind-boggling.

When you think of the amount of money that is overseas and cannot come back on to u.s. shores because it risks double taxation?

A lot of these companies have already paid money overseas and another marketplace.

Why not bring the money back if it goes to infrastructure and jobs and helps the economy?

Because these are huge public companies that have an obligation to pay the lowest tax possible.

I agree with tim cook.

Change the tax policy and incentivize them to bring the money back.

Is it going to be changed?

This is not a new subject.

Repatriation, reform of the tax code, that has been talked about for years.

It has been tried, by the way.

And it was not that successful.

It was like a one-time holiday.

But overall change?

The question is -- can washington get something like that?

And there is no pressure on them to do so.

Corporate borrowing rates are so low that companies do not need to repatriate the cash.

If you are interested in getting something done on both sides?

I remember sitting down with president clinton last spring and he was making the case.

You hear it from republicans, you hear it from business leaders -- at some point it is in the interest of the overall economy to do something, you hope.

You know what else could be a tax windfall?

Mobile gaming.

We have some new details on the king ipo.

They will be selling $22 million in shares according to an sec filing.

Valuation as high as $7.6 billion.


At the high end would be valued at four times last year's sale.

I guess it looks cheap compared to what else is out there.

Candy crush, the puzzle game you're watching right now, made up 70 eight percent of cash -- 78% of the cash spent on their site last year.


They are so dependent on this one game.

If you are buying it, you are buying faith in their developers . one of the reasons they want to go public is to have the cash to do other acquisitions.

They know they need to diversify.

Also, don't kids get bored of games?

Don't they follow out of favor?


You cannot be a one-hit wonder in the game world.

I have to get to this last story.

We are really excited about it.

She's and the european union making a stink over what we call our cheese.

They want us to stop using names like parmesan, gorgonzola, and feta.

This reminds me a lot about the champagne argument.

Sparkling wine made in the u.s. has to be called sparkling wine or champagne style.

Haven't we already, bit too far already?

That is what cheesemakers in the u.s. are arguing.

Parmesan is a place.

Gorgonzola is not a place -- is

This text has been automatically generated. It may not be 100% accurate.


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