The value of Bitcoin [BTC] and cryptocurrencies will diminish in the future, says Goldman Sachs


Goldman Sachs, one of the largest financial giants in the world, has published Outlook for the first time in mid-year. The report follows "Outlook – Unsteady as She Goes" released in January 2018. It states that the company considers Bitcoin and Cryptocurrencies one of the six unstable factors that are threatening Outlook.

The Mid-Year Outlook summarizes that, as mentioned in their January 2018 report, their opinion on Bitcoin and Cryptocurrencies remains intact and that the results of cryptocurrencies and Bitcoin have been realized sooner than expected.

According to the report, Bitcoin [BTC] has already lost more than 60% of its value compared to its high of December 2017 and that Ether [ETH] has decreased by over 70% in the last six months.

The company expects to see more decrease the value of cryptocurrencies in the future because they contradict their opinion on cryptocurrencies. They said:

"We expect a further decline in the future, considering our view that these cryptocurrencies do not meet any of the three traditional roles of a currency, they are neither a medium of exchange nor a unit of measurement, It is important to note that we continue to believe that such declines will not adversely affect the performance of broader financial assets. "

The reason the financial giant believes that cryptocurrencies would not have a negative effect is that they hold only 0.3% of world GDP at present.

The company in its report of January 2018 claimed to believe that Bitcoin was pushed into the "bubble territory". The rise of Bitcoin in December 2017 breaks the bubble of and has already passed the stock and tulip bubbles.

The report states:

"We think that the concept of a digital currency that uses blockchain technology is feasible considering the benefits it could provide: ease of execution at a global level, lower transaction costs, reduction of corruption as it is It is possible to trace all transactions, property security, etc. But Bitcoin does not provide any of these key advantages. "

Also states that it is completely opposed to defining a digital currency as there is no facility to execute and the resolution takes up to 20 days. The company believes that cryptocurrencies will not maintain value in the long run with its current status and that it can not replace the dollar "Steady as She Goes".

The company emphasizes that Outlook is published because of the conflict between economic growth and the shift of investors focuses on unstable factors like Bitcoin and cryptocurrencies. The company also states that the yield of 7% of the US equity share is going as planned, but total returns are showing signs of high volatility.

Along with "Bitcoin and the craze of unstable cryptocurrency", the other unstable factors that make up a threat are terrorism, geopolitical tension, the rise of cyberattacks, the rise of populism and politics. internal.

[ad_2]Source link