Goldman Sachs Wealth Management’s chief investment officer, Sharmin Mossavar-Rahmani, has made headlines with her strong stance against investing in cryptocurrencies. According to The Wall Street Journal, Mossavar-Rahmani believes that crypto is nothing more than a speculative asset and does not consider it a legitimate investment class.
Mossavar-Rahmani argues that it is nearly impossible to accurately value cryptocurrencies, as they do not produce earnings, cash flow, or dividends. She questions how investors can make informed decisions about crypto when its value cannot be assigned. Despite the recent surge in interest and the launch of Bitcoin exchange-traded funds by Wall Street giants like BlackRock and Fidelity, Mossavar-Rahmani remains unconvinced.
Drawing parallels to the infamous tulip mania of the 1600s, Mossavar-Rahmani warns that the current enthusiasm over crypto could lead to a similar bubble burst. She also highlights the use of cryptocurrencies in facilitating criminal activities, citing a recent case where a crypto mixing service was used to launder funds from illegal sources.
While financial advisors are increasingly recommending clients to include crypto in their portfolios, Mossavar-Rahmani’s clients are aware of her skepticism towards digital assets and are not rushing to jump on the bandwagon. As the debate over the legitimacy of cryptocurrencies continues, it remains to be seen whether Mossavar-Rahmani’s cautionary approach will be validated in the long run.
