Global Investment Research Leader Goldman Sachs Group Inc. made a frightening forecast for crypto-currencies: the recent drop in market value may continue.
In the report, Steve Strongin of Goldman Sachs expressed the opinion that many digital currencies are unlikely to stay afloat. As a result, investors should be prepared to ensure that tokens lose all their value as they get out of control.
Strongin added:
“I am worried about the high correlation between various crypto-currencies. Because of the lack of the intrinsic value of the currency, which do not have any chances, most likely, they will fall to zero. “
According to the head of the investment study, the digital currency is unlikely to survive due to several factors: slow transaction time, high maintenance costs and security problems.
He says:
“Crypto-currencies can not become like Amazon or Google. Rather, they will be the same as many of the now-defunct search engines. “
However, Strongin said that, despite the fact that market prices have fallen since early 2018, some of them may recover, adding that:
“Most likely, most, if not all, will never be able to reach the former peaks.”
It is noteworthy that, despite Strongin’s pessimistic views about where the crypto-currency market is located, others are completely confident of its growth.
According to Thomas Glucksmann, the head of the APAC business development department at the Gatecoin exchange, this year it is possible to see new highs of the crypto-currency prices promoted by technological developments and entry into institutional capital.
In an e-mail to CNBC, Glucksmann said:
“There is no reason why we would not be able to see Bitcoin, which will rest against the ceiling of $ 50,000 by December . “
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