Bank Goldman Sachs the first of the major U.S. banks have provided customers access to futures on bitcoin and is even planning to launch its own trading platform, decided to play it safe. Yesterday the Bank declared that bitcoin is a bubble, as companies of the era of the dotcom and Tulip fever. The newsletter for investors analysts warned about the excessive increase in the value of cryptocurrencies, especially highlighting the price movements of bitcoin and ether, as well as an increase in the shares of companies that are testing the technology of the blockchain.
According to one example, the stock price Crypto Company grew by more than 17,000%, before the Commission on securities and stock exchanges of the USA has suspended
trade. The authors believe such a rush is amazing because bitcoin is the world’s largest cryptocurrency by market capitalization, in their opinion does not carry those key benefits that are widely advertised. The letter reads:
«We believe that the concept of a digital currency based on blockchain viable, given its advantages, such as ease of international use, reducing transaction costs and corruption, since all transactions can be tracked, the safety of property etc. But in bitcoin there is no one of these key benefits.»
The authors of the report believe that committing a single transaction of bitcoin can take up to 10 days, and the value of bitcoin depends on the exchange through which the user carries out the transaction. The report also noted that the difference in price of bitcoin on different exchanges at the end of last year was more than $ 4,000. This meant that one user could pay for the bitcoin by 31% more than, which acquired it on the other exchange.
Another serious problem is the high transaction fees. However, despite the inflation of bitcoin and other cryptocurrencies, there is risk that they will affect the us or global economy, even in the event of its collapse.
While crypto-currencies are only a small part of the GDP of the US and the world (3.2% and 0.8%, respectively), the dot-com bubble reached much larger (101% and 31%, respectively). The authors of the report also does not believe that the collapse of bitcoin carries «serious consequences for the global economy or financial markets.» At the end of the report says that «we do not consider volatile cryptocurrency as an alternative to a stable dollar.»