Most of around 1,500 crypto currencies will not last long, according to the US investment bank Goldman Sachs.
Only small number of competitive digital currency is likely to survive, says Steve Strongin, head of investment research at Goldman Sachs.
Virtually all digital currencies are under considerable pressure. Decisive in the first place are regulatory efforts in many industrialized and emerging countries. Bitcoin, the oldest and most popular cyber currency, lost around 60 percent of its value since mid-December. Total value of all fallen digital currencies is about $ 460 billion or about 55 percent since early January.
“High correlation between the different cryptocurrencies worries me,” said Strongin in view of frequently synchronous price fluctuations. Because digital currency has no intrinsic value, such as precious metals, most of them are likely to fall to zero.
Strongin is more optimistic about Blockchain technology that underlies many cryptocurrencies. This, kind of decentralized account book, could improve financial processes. However, Goldman expert notes that the speed of the technology is still too low for many financial transactions.
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Categories: Crypto Currency