Wednesday, February 7th 2018
"Most Cryptocurrencies' Value Could Hit Zero", Warns Goldmann Sachs Analyst
Adding yet more tinder to the fire is usually the way for some players in the industry - and this isn't any different (one could even say this is exacerbated) by investment gurus and finance groups. Steve Strongin, Goldmann Sachs global head of investment research, said in a February 5th report that most digital currencies are unlikely to survive in their current form, and investors should prepare for coins to lose all their value as they're replaced by a small set of future competitors. Steve Strongin is particularly worried on account of "The high correlation between the different cryptocurrencies," adding that "because of the lack of intrinsic value, the currencies that don't survive will most likely trade to zero."
This is a trend that can usually be seen in the crypto market, as most alt-coins tend to follow Bitcoin's pricing trends, with their value being seemingly pegged to the current cryptocurrency king's value - and some might say credibility. There have been some instances of drifting pricing trends where some cryptocurrencies actually cease being pegged to bitcoin's value in their own valuation, but these events are usually few, far between, and tend to regress to their previous state.
According to Strongin, today's digital coins lack long-term staying power because of slow transaction times, security challenges and high maintenance costs. He further said that the introduction of regulated Bitcoin futures, which we've already covered here on TPU, hasn't addressed those concerns and he dismissed the idea of the advantage always being in the field of the pieces that make the first and more definite moves, comparing this cryptocurrency boom to the dot com bubble in the 1990's.
Source:
Bloomberg
This is a trend that can usually be seen in the crypto market, as most alt-coins tend to follow Bitcoin's pricing trends, with their value being seemingly pegged to the current cryptocurrency king's value - and some might say credibility. There have been some instances of drifting pricing trends where some cryptocurrencies actually cease being pegged to bitcoin's value in their own valuation, but these events are usually few, far between, and tend to regress to their previous state.
57 Comments on "Most Cryptocurrencies' Value Could Hit Zero", Warns Goldmann Sachs Analyst
Arguments aside, I can't afford to buy a GPU. So, even if I want to game, or mine coins, I have to put money aside in the hopes that NEXT YEAR, I have enough to buy one! Whereas, the money I saved from last year? Wasn't enough. As mentioned above, the "Deals" are still a 60%+ markup from MSRP.
4K TV's and Monitor's are cheaper than the GPU's that can run them.
Sad. I think it is sad. I can't even run Crysis!
Then, Who is the "WE" you think is dictating something?
I think I put it plain and simple above. Facts as Facts. No one is "dictating" and no one needs to judge my level of "want."
I don't believe you were trying to offend me but, as you can see, I am tired and ornery. I am hitting the sack, long day, blah blah.
:lovetpu:
If you're not talking physical currencies, the reason why it's cheaper to exchange money digitally is because governments aren't taxing the hell out of crypto yet. Fundamentally, it's the same reason why PayPal is cheaper. Or paying for something via credit card and paying the foreign exchange transaction fee. Case in point: crypto should be taxed at the capital gains rate which, for most, is 15%. That 15%, by itself, is more than the fees banks, PayPal, and credit card companies pay.
Edit: Bitcoin may not be worth all the hoopla: N.Y. Fed blog post