Goldman Sachs Spells Crypto Doom

In the space of several weeks, cryptocurrencies took a rather dispiriting plunge, if you are an investor at least. Nearly $500 billion of market value has gone down the drain as it is. But the worst may still not have come to pass.
Goldman Sachs Group Inc. believes that most cryptocurrencies may be completely devalued. And if you are one of the people to have invested generously in cryptocurrencies, now is the time to start panicking. Or rather, to reconsider your options.
According to Goldman’s Head of Investment Research Steve Strongin, cryptocurrencies cannot survive in their current form and all investors should be prepared for an even worse tumble in their market value.
Goldman Sachs did not offer any timeframe when the earth-shattering moment would finally hit crypto investors. Also, the recent jumps in the value of these crypto assets should have signalled the bubble that we may now see deflating.
What was cited as an example by Mr Strongin was that there was no intrinsic value for cryptocurrencies.
Mr Strongin outline several reasons why cryptocurrencies as we know them today do not have any real long-lasting effect. He cited slow transaction times as well as security reasons and high costs of operation to maintain these assets.
Even the introduction of more regulated Bitcoin futures would not change that, Mr Strongin believes.
We at Coincomparator have long been embracing the view that cryptocurrencies are beneficial to a handful of people rather than the vast majority. Even if the bubble ruptures and many people start losing money, in whatever currency, there will be those to turn the bad turn of events into fortune.
But they will be a select few individuals with vast with wealthy deposits of crypto assets.
Mr Strongin however remains optimistic about the future development of Blockchain, Bloomberg writes. Financial ledgers stand to benefit a lot from what has been done for cryptocurrencies as a whole.
It is true that even now many fintech start-ups are vying for power with traditional banks. Some established institutions are trying to bring them into the fold while others are fighting them.
However, most governments out there are lending their support for blockchain and as such banks are inclined to endorse them as well. Not that they do so enthusiastically.
For the most part, blockchain can bring additional security to the sector meaning many of the fees that banks now charge (to guarantee the save transfer of one’s money around) will need to disappear as there will be no factual reason for their staying in place.
But it is not just that. Fintech technologies could allow for safer transactions that are quicker and do not get lost in the financial nether. Human operators will not be as needed and it is likely that money will be moved easily from one bank to the next without exorbitant costs.
Yes, blockchain will certainly find rather more popular endorsement than what conservative bankers may suggest.
For better or for worse, the downfall of cryptocurrencies may spell a brave new world – for retail banking as well as businesses.

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