The global head of investment research working with Goldman Sachs Group Inc (NYSE:GS) has moved ahead to disclose that the recent tumble in cryptocurrencies could soon be getting even much worse. It was a tumble that reportedly ended up erasing almost $500 billion of market value in the previous month, a matter that resulted in much speculation.
According to him, it is very much unlikely that a large number of the digital currencies will be surviving in their current form. He has called upon each and every investor to prepare since the coins will soon lose their value since the future competitors will be stepping into the scene to serve as a replacement.
A lot of people anticipated that he would posit a timeframe for the coins to lose their extreme value, but matters did not move according to their set expectations. He outlined that the latest price swings pointed out to a bubble and that the projections about the tendency for different coins moving in lockstep was irrational in every sense.
One of the Crypto enthusiasts in a recent interview pointed out to the high correlation between the different cryptocurrencies outlining that it was a matter that was worrying him a great deal. The lack of intrinsic value might culminate in those currencies that won’t be surviving trading to zero.
A person familiar with the matter said, “Today’s digital coins lack long-term staying power because of slow transaction times, security challenges and high maintenance costs. He said the introduction of regulated bitcoin futures hasn’t addressed those concerns and he dismissed the idea of a first-mover advantage.”
The blockchain technology that underlies digital currencies is purportedly what could end fixing the financial ledgers and it goes without saying that caution needs to be exercised. There have been a series of discussions in the recent times. And one point that is coming to the limelight is that the current technology doesn’t provide the ideal speed for market transactions. The shifting business dynamics are not anything new since they have been the order of the day over the years.