Rather, only a small number of competitive species have been allowed to survive, writes steve strongin, head of investment research at goldman sachs, in a recent study.
The sharp price fluctuations of bitcoin and co. Speak according to strongin for a price bubble, i.E. An unsustainable price level. At the moment, all digital solutions are under considerable pressure. The decisive factors are primarily regulatory efforts in many industrialized and emerging countries.
Bitcoin, the oldest and best-known cybercurrency, has lost about 60 percent of its value since mid-december. The total value of all digital currencies has fallen by about $460 billion, or about 55 percent, since the beginning of january.
"The high correlation between the different cryptocurrencies worries me," strongin writes, referring to frequent synchronous price fluctuations. Because digital currencies have no intrinsic value like precious metals, most of them have been allowed to fall to a price of zero.
The expert is more optimistic about blockchain technology, which underlies many cryptocurrencies. This technology – a kind of decentralized account book – could improve processes in the financial system. However, strongin concedes that the speed of the technology is still too slow for many financial transactions.