Earlier this year, the cryptocurrency market faced a terrible downfall with currencies losing an average of $500 billion. Goldman Sachs Group Inc. predicts further dropping of cryptocurrency value. Steve Strongin, the head of investment research at Goldman Sachs Group Inc., recently reported a possibility of devaluation of currencies. Strongin observed that many currencies in the market lack potential to survive the long-term and could trade up to zero. Coins are experiencing reduced transaction times, steep maintenance costs and security hurdles. He questioned the ability of coins to survive the test of time just like Amazon and Google, amidst other players in the market. As per Strongin’s research, the bubble was brought about by price swings. With some of the currencies being closely associated, the intrinsic value of the coins is significantly reduced, something that can cause a nosedive in prices.
Strongin is confident in the ability of blockchain technology enhancing financial ledgers but warns of insufficient speeds for carrying out market transactions. Unfortunately, Bitcoin futures haven’t solved the issues of maintenance costs and delayed transactions. Strongin insists that despite the shaky prices in the market, there may be survivors in the long run.