Goldman Sachs warns affluent clients against Cryptocurrency Mania. | 코인긱스

Goldman Sachs warns affluent clients against Cryptocurrency Mania.

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Goldman Sachs has warned his wealthiest clients not to give up the “mania” critics that the investment banker has “moved beyond bubble levels.”

Goldman Sachs says cryptocurrencies will not retain long-term value:

Private Wealth Management has issued this warning in “Un-Steady as She Goes,” a 108-page mark distributed to customers by more than 10 million dollars in investable assets this month.

While us do not know whether a Bitcoin or any other cryptocurrency will double or triple from predominating prices, we do not think these cryptocurrencies will retain their long-term value in their current incarnation, wrote Goldman’s group of directors and analysts Sharmin Mossavar-Rahmani and Brett Nelson.

The bank said it is quite promising for the prospects of the digital coin and technology is blockchain in general, however, said that Bitcoin does not offer users any of the “key benefits” of this technology.

We believe that the concept of a digital coin using blockchain technology is viable. Given the benefits, it could offer: global execution ease, lower trading costs, reduced corruption, because all transactions could be tracked, security of property, and so on, but Bitcoin does not offer any of these key benefits, on the contrary, Goldman wrote.

In what became a well-tolerated critique, the note analyzed the current state of cryptocurrency markets to the so-called “tulip bubbles,” in Holland in the 17th century, continuing that the Bitcoin has already “degraded” the tulip and other historical bubbles active.

There is no suspicion that the Bitcoin price increase pushed it into the bubble, the note stated, “cryptocurrencies have gone beyond bubble levels in the financial markets.”

The followers risk laughing at the human folly of our time that in our day the tulip flowers were so adored, “Goldman said, quoting a Dutch historian who wrote a decade after the prices of the tulips collapsed.

Bitcoin Bubble will not affect your actions

Still, unlike a recent analysis by Wells Fargo, Goldman said he did not believe that a crisis in the cryptocurrency market would come in traditional operations, at least at the current market level.

We should likewise add that we do not believe that a breakdown in Bitcoin will have significant contagion effects on the global economy or financial markets, Goldman wrote:

At the dot-com bubble tip in March 2000, combined market capitalization Nasdaq and S & P 500 information technology funds accounted for 101% of US GDP including 31% of world GDP. The aggregate market capitalization of cryptocurrencies is 3.2% of US GDP plus 0.8% of world GDP.

Christopher Harvey strategist at Wells Fargo, on the other hand, declared last month he thought that the cryptocurrency market correction had already started to affect the actions.

The post Goldman Sachs warns affluent clients against Cryptocurrency Mania. appeared first on Crypto News 24/7 – Bitcoin News.

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