[News] "Most Cryptocurrencies' Value Could Hit Zero", Warns Goldmann Sachs Analyst

[StyM]

https://www.techpowerup.com/241339/m...-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.

[BenchZowner]

Hahaha, yeah.
Let's trust Goldman Sach's and JP Morgan fraud attempts.

That's their classic playbook to do their Pump & Dump schemes and to buy valuable assets for dirty cheap.

A few months ago JP Morgan's CEO did the very same thing, stated that Bitcoin is a fraud and will collapse... and it kinda did, the next day after his statements it lost around 25% of its USD exchange value... and JP Morgan purchased a good stack of Bitcoins...

We love you guys!

[dstedman]

My analysis - Goldmann Sachs could hit zero.

[kromosto]

I think this is not a possibility but a fact. The number of cc are way too much. Most of them will be eliminated for sure.

[Sparky]

He does have a point that they have no intrinsic value. Heck, neither does paper fiat money, but at least you can burn the paper to create a little bit of light and heat for a short bit. Can't even do that with crypto

[AliG]

He does have a point that they have no intrinsic value. Heck, neither does paper fiat money, but at least you can burn the paper to create a little bit of light and heat for a short bit. Can't even do that with crypto

I get the point you're trying to make, but how does fiat have no intrinsic value? It's a share of a clearly defined asset (namely how much the world deems a country's economic output to be worth). That's like stating that a stock has no intrinsic value or that the only things with intrinsic value are those that can be physically used (such as gold).

[kromosto]

Think like this, your government decided to make central banks open market and lots of central banks with their own currency opened in your country. After some time passes only the ones that are used for transactions will be survived and the ones which are not used... if its central bank won't agree to exchange it to a used one then they have no value (except for collections)...

[Particle]

I get the point you're trying to make, but how does fiat have no intrinsic value? It's a share of a clearly defined asset (namely how much the world deems a country's economic output to be worth). That's like stating that a stock has no intrinsic value or that the only things with intrinsic value are those that can be physically used (such as gold).

It's worth pointing out that that is what intrinsic means. Your shares of stocks are just a few bytes in a database. They have no intrinsic value. That isn't to say they have no extrinsic value. The intrinsic value of cash is whatever that much paper and ink can do for you. You could use it for fire or bookmarks or whatever I guess. The extrinsic value of cash is built upon external factors like confidence and trust that those who wish to trade it have.

[3dfx]

I have observed and interesting pattern over the last (at least) 15 years concerning Goldman Sachs.

If you negate whatever official statement they make you actually get a pretty good prediction.

The number of Cryptocurrencies will get culled in the near future and only the most viable ones will still be in use. That is how markets work in any economy, virtual or real. I don't agree with Goldman Sachs research who states that cryptocurrencies will get replaced. Right now there is not even a theoretical alternative for them.

[BenchZowner]

https://www.financemagnates.com/cryp...rming-bitcoin/

I laugh whenever those greedy liars try to fool the public with their "statements" and tiny bits in interviews like JP's CEO and the others calling bitcoin a fraud only to see its value fall the following day and then... they purchase bitcoins... its ironic how they can lie just to get what the want at the price they want.

[NEOAethyr]

He does have a point that they have no intrinsic value. Heck, neither does paper fiat money, but at least you can burn the paper to create a little bit of light and heat for a short bit. Can't even do that with crypto

Totally agree.
However I'm not so sure I'de trust these guys when it comes to this topic, I'de be iffy trusting them at all tbh.
But esp. on this topic.

edit:

I get the point you're trying to make, but how does fiat have no intrinsic value? It's a share of a clearly defined asset (namely how much the world deems a country's economic output to be worth). That's like stating that a stock has no intrinsic value or that the only things with intrinsic value are those that can be physically used (such as gold).

I think what he means is that cash isn't backed by gold anymore, it has no 'real' material value.
Other then what others perceive as value, if they except cash, it's worth something.
Regardless if people know the true value or not.

Speaking of currency, one of the more interesting things I've come across is that you can still get gas for under $1 a gal.
If you pay for it in silver...
I mean, the old silver coins we used to mint here in the states.
If you collected enough of them, traded them in for the silver value type of thing...