According to Goldman Sachs Group Inc.’s global head of investment research, most cryptocurrencies are going to hit zero and soon. Experts claim the recent tumble in cryptocurrencies that erased nearly $500 billion of market value over the past month could get a lot worse.
Many analysts have warned that cryptocurrencies have no tangible value. Among them, the analyst who predicted the 2008 recession, Peter Schiff, has said at some point, Bitcoin will be worth its actual value: $0. He also predicted that many investors would lose everything when the Bitcoin bubble pops. Now, Goldman’s Steve Strongin has said something similar.
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, Strongin said in a report dated February 5 of this year. 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 tokens to move in lockstep wasn’t rational for a “few-winners-take-most” market.
“The high correlation between the different cryptocurrencies worries me. Because of the lack of intrinsic value, the currencies that don’t survive will most likely trade to zero.” –Steve Strongin
According to Strongin, today’s digital coins lack long-term staying power because of slow transaction times, security challenges, and high maintenance costs. 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 again.”
As previously reported by SHTFPlan, Peter Schiff’s main concern with Bitcoin echoes that of many preppers, including Mike Adams, the Health Ranger. “These currencies are going to trade to zero or pretty close to it when the bubble pops,” predicts Schiff. “Right now, the only reason why people are buying bitcoin is because the price is going up. When it turns around, they are not going to sell it for the same reason. There is no value in bitcoin, you can’t use it as money,” Schiff points out. “It’s too slow, too expensive and too vulnerable.”
Analysts all seem more positive about the prospect of the Blockchain technology than they do a cryptocurrency.
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Investing in imaginary currency isn’t investing, it’s foolish. I hope it does crash to its true value of zero, teach fools a lesson.
The true ‘value’ that is overlooked is that like cash, it’s an instrument of debt and payment. It JUST eliminates the middle man. Putting cash into the system without asking your bank permission to do the business and wait hours or days to finalize a transaction on their terms is what Bitcoin is for.
Chainsaw, you’re right on all points. Just leaving out the obvious one. Cash and cryptos today both have zero value with or without the controllers permission. And that is the crux, the ‘rub’. There is only one true way to have a currency of value – for it to be backed 100% in affirmed/confirmable holdings of mutually accepted by all parties …. value. The value of whatever asset that is agreed upon must be tangible. I don’t care if it is gold, silver or some great big rock. But no instrument of debt or payment will survive in the long run without some real-world backing and complete faith and acceptance of its intrinsic worth. Fiat is word that implies arbitrary worth due to some power backing it. What is needed is NO power backing our currency(ies) beyond all those who use it/them.
If I write a check, it doesn’t clear the bank for days or weeks. That’s slow. And is there no cost? Sure there is. Each check costs 0.125 cents. Granted, that’s cheap, but a cost is what that is. And the dollars in my account are digital, just like bitcoin, not physically anything. Even paper dollars are ‘fiat’, which is a word that merely means that a government has decreed that it has value. Things that have real value don’t need to be decreed. The real value of bitcoin is that bankers and governments do not control it, therefore can’t irresponsibly overspend it, and can’t make it inflate or deflate. In other words, they can’t abuse it or misuse it. People in government resent this fact. The argument that crooks use bitcoin is meaningless because crooks also use dollars, and about that, crooks in banks and governments do not bother to concern themselves.
“CRYPTO PONSI FRAUD” BUYER BEWARE. IF YOU OR I SOLD FRAUDULANT DIGITAL IOU PROMISSARY CURRENCY OR PAPER CURRENCY BASED ON NOTHING, WE WOULD BE PUT IN JAIL.
I’ve made thousands of dollars with crypto. How is it any less “real” than fiat which is controlled by central banks and created out of thin air.
There is a finite amount of most cryptocurrencies. For example, there will only ever be 21 million bitcoins, EVER! They can’t just print up more. That’s not how it works.
Supply and demand will inexorably drive the price higher.
And there is no corrupted middle man deciding policies that screw people over and taking outrageous fees in the process.
Your casual dismissal leads me to believe that you actually know very little about the technology behind this trend and the massive impact it is going to have on our world in short-order.
Granted, there is a lot of garbage out there but also incredible, once-in-a-lifetime opportunities.
I suggest you really look into it and try to understand the transformative nature of the technologies. Great change is upon us and the old world and way of doing things will soon be left in the dust.
But, what do I know, I’m just a fool…
I bought Gold and Silver with my bitcoin a little bit back. Since I mined another crypto with commodity hardware and ShapeShifted to bitcoin, I have lost nothing. I sold most of my hardware for a small profit. Subtract electricity cost and still made thousands. So even if it is tulip bulbs I did OK. As for it not having a tangible value, fiat currencies don’t either. Gold and Silver have been recognized as money for centuries, but that value is based on scarcity. If we found an asteroid made of gold and brought it back to earth, gold would be worth less by a huge factor.
Oh gee….what a shock.
Now….what have I been saying?
Tulip bulbs.
I swear, the next time I hear a talking head use the term “redacted”, I’m going to scream!
Has anyone here ever sold gold and made a profit ?
Scarecrow – I buy on the dips and sell on the highs. I’ve bought at prices from $700 upto $1,200 an ounce. Gold is hovering just shy of $1,300 an ounce now so yes, it is possible to make money, but not always quickly, but better than a bank account pays in interest (and safer).
I recall the story of someone finding a $20 bill and a $20 gold coin that had been hidden in a wardrobe for years. The bill was still only $20. The coin was worth a lot more! Maybe apocryphal but still illustrates that gold is an immutable store of value.
I use gold/silver as hedge to the dollar loosing value. It’s tough to “invest” and do well.
Yes. I did.
I’m not against the concept of crypto/digital currencies. But they have many risks. One of which is. TPTB will eventually be able to strip you remotely without risking a single person busting down your door.
So what!!! Like I keep saying if you don’t hold it you don’t own it.
Sgt.
Crypto: The End of Freedom!
https://www.youtube.com/watch?v=1BfMFOd0-l0
Eyes wide shut:
Excellent video. I have long suspected that crypto currency was created by the NSA or some other group paid by the elite powers that be in order to get us to accept the one world currency, but it was just my own suspicion. Thanks for this video. I watched it after making my comment. I still think bitcoin can be used as an investment. I checked again. Bitcoin is up 10%, in other words, it dropped 10% in a few minutes. That is some insane volatility. Maybe your video did this. That is insane.
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There’s nothing wrong with having a little bit of money in bitcoin. It is the per cent of your total savings that matters. Putting 90% of your savings into bitcoin is crazy. Putting 3% to 5% of your total savings is probably wise. Here is my logic.
Our paper money has no intrinsic value either. If all your savings are in the bank, the bank can make an error with your account that wipes you out. Paper cash is safer, but is subject to hyperinflation as we have seen. The current value of a paper dollar being all of four cents, compared to its value in 1913.
Bitcoin may go down significantly. But I doubt it will go to zero. As long as there are true believers, and there are many, it will hang on if even by a thread. The longer it hangs, the more confidence will grow. Gamblers will see the potential and they’ll jump in and roll the dice. As the value of bitcoin goes up, the “smart money” will come back forcing the value to surge upwards; afterwards the general public will regain confidence and the value of bitcoin will be in hundreds of thousands.
At this point, I predict, a new and improved crypto, whether it is called bitcoin or something else, will be introduced that has none of the flaws of bitcoin. It will be very convenient. And it will be the global currency everyone will use to buy and sell, without which no one will be able to buy or sell.
I see no reason not to own a little bitcoin. Just don’t sell the farm to get in at this here low price.
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I just checked. Bitcoin is up 20%, as are other crypto currencies.
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It’s funny reading the comments. I wonder how many on here truly understand blockchain technology and how this really works. They just parrot and article that its good or its bad and don’t really dig into it. I guess everyone is content with having a government controlled money who’s true value is zero.
I agree that we are a long way from using crypto as a currency, however, the blockchain technology can be used to fix a lot of problems. One of the companies Jelurida has a couple of blockchains that can help #ARDOR and #IGNIS.
They know enough about flowers to recognize a tulip at sight, and they have blown soap bubbles themselves, so jabber up their vocabulary hoping everyone will think they are brilliant.
Sounds like you are promoting the vision outlined by the Club of Spain, aka the World Shift Network, aka a major NGO of the UN. They agree with your solutions —
“We support the shift of our economic focus from translational corporate “fusionism” to regional subsistence. Subsistence economy focuses on a “natural” way of living. This is not “back to stone age”. It rather means a spiral, wavelike progress out of the life-destroying habits of today’s so-called civilization and accepting and welcoming the complexity of life.
We support the development of sustainable, decentralized, that is local, high-tech production, combined with local use of local resources. and the redesign of our monetary system according to a fourfold model: 1) economy of gifting (a basic matriarchal feature), 2) counter-trade (barter) economy, 3) complementary local monetary systems for regional trade, and 4) unified currency (for example called “terra”) for interregional and global trade. In our eyes compound interest has to be abolished. Also the concept of “owning” land must be reconsidered.”
It’s nice to know that I am smarter than the global head of investment research at Goldman Sachs. And also frightening. Good luck out there.
IOTA…
Cryptocurrencies are no different than any fiat currency – no inherent value in either of them. So what *is* happening?
The credit card companies are acting to prevent crypto purchases using credit cards.
The bankers will not abide anyone threatening their perpetual usury scam.