+++ P.O. V.I. (BBG) Get Ready for Most Cryptocurrencies to Hit Zero, Goldman Says



…Usually I never agree with “the Vampires of Wall Street”…

…But when they are right, they are right…

…Goldman Sachs certainly knows about bubbles…

…They rose every bubble and every bust since the 1900’s…

…What strikes me is the number of people that have been blinded by money in this idiocy…

…And they say things like this:

…”The biggest mystery of the 21 st century is in the markets, and it’s the Bitcoin…”

…Money blinds people…

Francisco (Abouaf) de Curiel Marques Pereira

(Bloomberg) — The tumble in cryptocurrencies that erased
nearly $500 billion of market value over the past month could
get a lot worse, according to Goldman Sachs Group Inc.’s global
head of investment research.
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, Goldman’s Steve Strongin said in a report dated
Feb. 5. While he didn’t posit a timeframe for losses in existing
coins, he said recent price swings indicated a bubble and that
the tendency for different coins to move in lockstep wasn’t
“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.”
Today’s digital coins lack long-term staying power because
of slow transaction times, security challenges and high
maintenance costs, according to Strongin. He said the
introduction of regulated Bitcoin futures hasn’t addressed those
concerns and he dismissed the idea of a first-mover advantage —
noting that few of Internet bubble’s high fliers survived after
the late 1990s.
“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,” Strongin said. “At the same time, it probably does
mean that most, if not all, will never see their recent peaks
Strongin was more upbeat about the blockchain technology
that underlies digital currencies, saying it could help improve
financial ledgers. But even there he sounded a note of caution,
arguing that current technology doesn’t yet offer the speed
required for market transactions.
For more on cryptocurrencies:
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Bitcoin Snaps Slide as Crypto Markets Dodge Push for Regulation
Bitcoin Miners Face Shakeout as Only Strongest Survive at $6,000