Steven Strongin, director of the research service global investment at Goldman Sachs, has published a note in which he is very pessimistic for the future of the crypto-currency. In effect, he asserts that the value of most digital currencies should quickly drop to zero.
A catastrophic situation
Steven Strongin knows what he’s talking about. This specialist of financial markets is recognized for its qualities in the United States. However, it has just write a note in which he states that the situation of the crypto-currency is soon to get worse.
Pixabay – Mohammed Hassan / Unlike most analysts, Steven Strongin think that crypto-currencies will collapse.
According to him, the various crypto-currencies would very soon depreciate heavily and lose a lot of money for investors : “people seem to trade crypto-currencies as if they were going to all survive, or at least maintain their value. But the high degree of correlation between these assets is worrying to me. Contrary to what one might expect in a rational market, the arrival of the new currencies does not seem to reduce the value of the oldest : they all seem to evolve as an asset class unique. ”
Steven Strongin said in conclusion that the value of most crypto-currencies will be close to zero in the next few months.
A bleak future
The analyst makes an interesting parallel between the Internet bubble of the 1990s and the outbreak of Bitcoin. It shows that only some companies such as Google and Amazon, have been able to survive the bursting of the bubble. And it will be up to him exactly the same with Bitcoin and other virtual currencies : “It is not because we are in a speculative bubble and that prices will not increase for a handful of survivors […] at the same time, this probably means that most of the crypto-currencies, if not all, will see no more their recent record. “
Pixabay – TechGeekVector / According to the analyst, the value of crypto-currencies will fall back to zero.
However, with regard to the technology BlockChain, Steven Strongin remains optimistic and believes that it could help to improve the internal financial systems of the banking institution. So this man is not opposed to crypto-currencies, but he no longer believes in…
Source : Bloomberg