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Goldman Sachs predicts further cryptocurrency market tumbling

Experts from Goldman Sachs Group Inc. believe that the ongoing cryptocurrency meltdown that have already caused $500 000 000 000 losses in related market value may be just a foreshadowing of a looming greater-scale crash.

According to the recent report by Goldman’s expert Steve Strongin, most cryptocurrencies stand little chance of surviving in their current form, as they are going to lose the lion’s share of their market value and be replaced by small set of more competitive successors. While not specifying the exact dates of the cryptocurrencies’ terminal decline, the author of the report stated that the recent price swings together with the suspicious synchronicity in different token prices fluctuation are the bubble indicators.

“The high correlation between the different cryptocurrencies worries me,” Strongin said. “Because of the lack of intrinsic value, the currencies that don’t survive will most likely trade to zero.”

Strongin denies digital coins the long term market survivability because of associated low transaction speeds, multiple security complications and costly maintenance.

“Are any of today’s cryptocurrencies going to be an Amazon or a Google, or will they end up like many of the now-defunct search engines? Just because we are in a speculative bubble does not mean current prices can’t increase for a handful of survivors. At the same time, it probably does mean that most, if not all, will never see their recent peaks again,” – he concluded.

He is more optimistic about the underlying blockchain technology, however, seeing it as a possible solution to the problem of securing financial ledgers and transactions. Even though, at in the current state of development blockchain mechanism works too slow to become an effective basis for market transaction, the expert believes.