Goldman Sachs to invest $ 50 million in bitcoin

Investment banking giants Goldman Sachs has decided to invest a handsome amount of money in online currency “Bitcoin.” As the value of bitcoin has greatly gone down recently, the financial system is taking note of its decision.

The New York Times reported on Thursday that Goldman Sachs is joining hands with China-based IDG Capital in investing 50 million U.S dollars in “Circle Internal Financial,” a digital currency company that makes payment with bitcoin. Up to date, investment firms in several countries have displayed their interests in bitcoin investment but none of them has actually been realized.

At some point in 2014, its value has surged to 1,200 dollars per coin but recently plummeted to around 225 dollars due to unstable credibility caused by multiple frauds.

As the current payment system is costly and complicated, it appears not to be sustainable. Future financial transaction is expected to be made through virtual currency, which is cheaper and more convenient, predicted Goldman Sachs. The firm also forecast that payment volume of virtual currency would reach up to 1.2 trillion dollars.

minwoo@donga.com