Goldman Sachs will talk Bitcoin and inflation as FED prints $3 trillion

Goldman Sachs will talk Bitcoin and inflation as FED prints $3 trillion

Investment banking firm Goldman Sachs intends to host a call regarding Bitcoin, gold, and inflation in less than a week.

It appears that the client call might have something to do with the growing risk of inflation and how “hard currencies” like Bitcoin and gold may perform in this economy.

Meanwhile, the U.S. Federal Reserve has had an aggressive approach in a bid to “rescue” the economy amid the pandemic.

Fed prints $3 trillion, potential repercussions anticipated

It’s only been the second quarter of 2020, yet the U.S. Federal Reserve had already printed over US$3 trillion [AU$4.5 trillion] under quantitative easing and corona-induced fiscal programs.

In fact, they’ve nearly doubled the entire Federal balance sheet in the last four months alone.

federal reserve assets - Goldman Sachs will talk Bitcoin and inflation as FED prints $3 trillion

Although many economists have commended the Fed’s quick response in saving a nation in financial turmoil, some critics caution of the potential repercussions of their behavior.

Goldman Sachs client call

One of the biggest investment banking companies, Goldman Sachs, will host a conference call on “U.S. Economic Outlook and Implications of Current Policies for Inflation, Gold and Bitcoin.”

The call is scheduled for May 27, 2020, at 10:30 A.M. EST, and will be lead by Goldman Sachs chief investment officer Sharmin Mossavar-Rahmani.

Moreover, Mossavar-Rahmani will be joined by the firm’s chief economist and head of Global Investment Research Jan Hatzius, as well as Harvard professor Jason Furman.

Back in 2018, Mossavar-Rhami had stated that cryptocurrencies like Bitcoin “would not retain their value.”

Contrary to that statement, the bank’s CEO Lloyd Blankfein had said that he wouldn’t rule out the possibility of Bitcoin’s future.

As of now, no one has revealed any further details on the contents of the forthcoming client call beyond what is being presented in the headline.

Still, the title does hint that it might have something to do with fiscal policy and the risk associated with inflation, as well as how it affects the value of Bitcoin and gold.

Bitcoin non-inflationary by design

Bitcoin’s monetary system is non-inflationary by design. But in theory, it could be considered a deflationary asset since lost coins are impossible to retrieve.

With this in mind, one could argue that BTC, which recently had its third halving, would thrive in the current economic landscape.

This sentiment has caught the attention of billionaire hedge fund manager Paul Tudor Jones, who shared his bullish outlook for Bitcoin futures earlier this month.

Furthermore, he also predicts that if the coronavirus isn’t contained in a year, a “second depression” might be imminent.

The question is, how will this affect Bitcoin?

Featured image courtesy of Thomas Dimson/Flickr

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