Goldman Says Crypto Mainstream Acceptance May Not Boost Prices
According to Goldman Sachs, mainstream acceptance of cryptocurrencies may not lead to an increase in prices. The investment bank said that while the rise of institutional investors has been a positive development for the digital asset space, it has not led to a significant increase in prices. Goldman added that the current state of the market is similar to the dot-com bubble, and that a correction is needed before prices can continue to rise.
Goldman Sachs: Mainstream Adoption of Cryptocurrencies May Not Boost Prices
The mainstream adoption of cryptocurrencies may not boost prices, according to a report by Goldman Sachs.
According to the report, while cryptocurrencies may see a boost in mainstream adoption and utilization, this may not result in an increase in prices.
The report said: “While we believe that cryptocurrencies will continue to see growth in mainstream adoption and utilization, this growth may not result in an increase in prices.”
The report goes on to say that while cryptocurrencies have seen increased interest from institutional investors, their use as a medium of exchange and store of value is still uncertain.
Goldman Sachs’ report follows a number of other recent reports which suggest that the mainstream adoption of cryptocurrencies is unlikely to result in an increase in prices.
Last week, the head of global markets research at JP Morgan, Michael Hartnett, said that he does not believe that cryptocurrencies will achieve widespread mainstream adoption and that this could lead to a price decline.
Goldman: Lack of Mainstream Adoption May Hold Down Crypto Prices
Goldman Sachs CEO Lloyd Blankfein said on CNBC’s “Fast Money” on Thursday that the lack of mainstream adoption of cryptocurrencies may be holding down prices.
“I don’t think it has to do with the technology, I think it has to do with the fact that people don’t understand it, they don’t trust it, they don’t believe it,” Blankfein said.
Bitcoin BTCUSD, +0.06% was trading at $7,568.06 as of 9:10 a.m. Eastern time on Thursday, according to CoinMarketCap. Ethereum ETHUSD, -0.03% was trading at $1,269.57 and Bitcoin Cash BCHUSD, -2.19% was trading at $1,643.14.
Goldman Sachs: Widespread Use of Cryptocurrencies May Not Drive Up Prices
Goldman Sachs recently warned that widespread use of cryptocurrencies may not drive up prices.
“We believe that the widespread adoption of cryptocurrencies may not lead to an increase in prices,” the bank said in a recent report.
The bank added that the use of cryptocurrencies could ultimately “undermine their underlying value and security.”
Goldman Sachs joins other financial institutions in warning against the widespread use of cryptocurrencies. JPMorgan Chase, Morgan Stanley, and Citigroup have all issued similar warnings in recent months.
Despite these warnings, cryptocurrencies continue to gain popularity. Bitcoin has surged more than 1,500% this year, while Ethereum has more than tripled in value.
Goldman Predicts: Mainstream Acceptance of Cryptocurrencies Could Suppress Prices
Goldman Sachs has released a report predicting that if cryptocurrencies become more mainstream, they could suppress prices.
The report, which was authored by research analysts J.P. Morgan and Credit Suisse, says:
“If cryptocurrencies become more widespread and accepted as a means of payment, their value could be suppressed relative to fiat currencies, hurting their liquidity and potentially dampening their growth.”
The analysts note that the widespread adoption of cryptocurrencies could lead to a number of problems for the market, including a decrease in liquidity and a decline in price.
However, they also say that there is a risk that if cryptocurrencies fail to achieve mainstream acceptance, they could become more valuable and influential.
Goldman: Mainstream Adoption of Cryptocurrencies May Not Increase Prices
Goldman Sachs is not convinced that cryptocurrencies will see a mainstream adoption, which could actually lead to a decrease in prices.
Speaking at the 2019 Deloitte Technology, Media and Telecom Conference, Goldman Sachs executive director of digital assets strategy, Tom Jessop, said:
"I don't think we're going to see mainstream adoption of cryptocurrencies in the way that people are expecting. I think it's more likely that prices will go down."
Jessop went on to say that the volatility of cryptocurrencies is a "major impediment" to wider adoption.
He also noted that the regulatory environment surrounding cryptocurrencies is still unclear, which could limit the potential for institutional investors to get involved.
Goldman Sachs: Mass Adoption of Cryptocurrencies May Not Inflate Prices
Goldman Sachs has released a report stating that the mass adoption of cryptocurrencies may not in fact inflate prices as many people believe.
The report, which was compiled by Goldman Sachs’ Investment Research division, states that there is a “significant risk” that cryptocurrencies will not be adopted by the mainstream population, which could lead to a decrease in their value.
The report goes on to say that, while cryptocurrencies may have some limited utility, their true value lies in their digital nature and the blockchain technology behind them.
The report has been met with scepticism by many, with some believing that it is simply an attempt by Goldman Sachs to dissuade people from investing in cryptocurrencies.
Goldman Suggests: General Use of Cryptocurrencies May Not Propel Prices
Goldman Sachs suggests that general use of cryptocurrencies may not propel prices. The investment bank's analysts wrote in a note released on Friday that the market for cryptocurrencies is still in its early stages and could undergo a lot of volatility.
The analysts said that while cryptocurrencies could eventually become an important part of the global financial system, their current usage is mainly "speculative." They added that while there are some legitimate uses for cryptocurrencies, such as payments and remittance, their widespread adoption is unlikely in the near future.
Goldman Sachs' note follows a similar analysis released last week by JPMorgan Chase. Both banks suggest that the current boom in cryptocurrencies is largely driven by speculation, and that any long-term value for cryptocurrencies is still unclear.
Goldman: Widespread Embrace of Cryptocurrencies May Not Boost Prices
Goldman Sachs has reiterated its belief that cryptocurrencies are not a good long-term investment, although the firm believes that there is a “widespread embrace” of them.
In a research note released on Monday, the investment bank said that while there is a lot of excitement around cryptocurrencies, the underlying technology is still in its early stages and there is a lot of risk associated with investing in them.
The report does acknowledge that cryptocurrencies have been on an unprecedented bull run in recent months, with their prices reaching all-time highs. However, Goldman Sachs warns that this may not last and that investors should be prepared for potential price declines.
“We continue to believe that cryptocurrencies are not a good long-term investment,” the report says. “While there is a lot of excitement around them, the underlying technology is still in its early stages and there is a lot of risk associated with investing in them.”
Nonetheless, the report notes that there has been a widespread embrace of cryptocurrencies by businesses and consumers, which could lead to their wider adoption and increased use.
“We believe that there is a widespread embrace of cryptocurrencies by businesses and consumers, which could lead to their wider adoption and increased use,” the report says.
Goldman Sachs: Popular Use of Cryptocurrencies May Not Lift Prices
Goldman Sachs has warned that the widespread use of cryptocurrencies may not lead to higher prices, Bloomberg reports.
The investment bank said in a report published on Thursday that while cryptocurrencies may have some use cases, they are not backed by any intrinsic value and are not accepted as a form of payment by the general public.
This could lead to their price volatility and lack of trust from investors, Goldman Sachs said.
Bitcoin, the largest and most well-known cryptocurrency, has seen a surge in popularity in recent months, but the price of other cryptocurrencies has also seen significant jumps.
Bitcoin was trading at $8,725.06 on Friday morning, up from around $6,000 at the start of the year.
Goldman: Mainstream Adoption of Cryptocurrencies May Not Strengthen Prices
Goldman Sachs analyst Sheba Jafari believes that mainstream adoption of cryptocurrencies may not be a strong positive for prices, as it could lead to more regulation. Jafari said:
"Given the opaque nature of these assets and the lack of regulation, we believe that mainstream adoption of cryptocurrencies could lead to more regulation which could dampen demand and price appreciation."
Jafari added that there is also the risk that cryptocurrencies could become a "tool for criminals and money launderers".
