Goldman believes that most cryptocurrencies are about to hit zero
Goldman Sachs Group Inc’s global head of investment research cited that the chaos in cryptocurrency that instigated almost $500 billion of market value through the past month could run in more vivid movement. At the beginning of the year, cited by CoinMarketCap.com, the accumulated value of all cryptocurrencies combined was 17.7 billion; however, during the evening of Dec.12, the accumulated value of more than 1,350 virtual currencies exceeded $500 billion for the first time.
In a Feb.5 report cited by Goldman’s Steve Strongin, most digital currencies are nearly impossible to be vital in their current form, and investors should wait for the downfall of coins value because they are currently defeated by a hint of future competitors. While he didn’t point out a timeframe for losses in available coins, he believed that price volatiles could egg-on a bubble and that the chance for different tokens to penetrate in lockstep wasn’t feasible for a “few winners-take-most” market.
By virtue of the lack of intrinsic value, the currencies that don’t survive will most likely approach zero level. Strongin added, “The high interconnection among the different cryptocurrencies stirs up worries in him.”
According to Strongin “On account of slow transaction times, securities issues and high maintenance costs, digital coins in today’s age has lack of long-term staying strength. He believed that the appearance of regulated Bitcoin futures had made no difference to those issues and he extirpated the idea of a first-mover advantage—showing that a touch of Internet bubble’s high fliers survived after the late 1990s. “Are any of today’s cryptocurrencies going to be showing up in an Amazon or a Google, or will they terminate like many of the now-defunct search engines? Just because we can speculate bubble does not mean current price can’t raise for a handful of survivors,” Strong added. “At the same time, it does indicate that most will never see their recent crest again.”
Strongin showed more positive attitude with the blockchain technology that is the foundation of digital currencies, believing that it could help modify financial ledgers. However, he also represents some cautions because current technology doesn’t yet satisfy the speed demanded by market transactions