Will most cryptocurrencies soon find an end and disappear?

seele01 (34)in #crypto • 6 years ago (edited)

I read a very interesting article by Goldman Sachs today, which says that most of the 1500 or so cryptocurrencies currently in existence, according to the U. S. investment bank, won't exist for long and will soon be lost. Rather, only a small number of competitive species are likely to survive, writes Steve Strongin, head of investment research at Goldman Sachs, in a recent study.

Of course, this sounds pretty tough and hair-pulling now, but there are many indications for this statement by Steve Strongin.

According to his statements, the strong price fluctuations of Bitcoin & Co. speak for a price bubble, i. e. an unsustainable price level. Currently, virtually all digital currencies are under considerable pressure. Decisive factors are primarily regulatory efforts in many industrialized and emerging countries, such as currently in Germany, where the Federal Ministry of Finance has issued a statement on the taxation of cryptocurrencies: https://de.scribd.com/document/372651554/2018-02-27-Umsatzsteuerliche-Behandlung-Von-Bitcoin-Und-Anderen-Sog-Virtuellen-Waehrungen#download&from_embed. It describes, for example, the taxation of Fiat to Bitcoin, Bitcoin to Fiat, as well as trading platforms and mining, and other services paid for with Bitcoins.

Bitcoin, the oldest and best-known cyber currency, has lost around 60 percent of its value since mid-December. The total value of all digital currencies has fallen by about 460 billion dollars (373 billion euros) or about 55 percent since the beginning of January. At the moment, it is at around 500 billion dollars in March.

"The high correlation between the various cryptocurrencies worries me," Strongin writes, referring to frequently synchronous price fluctuations. Because digital currencies have no intrinsic value such as precious metals, most of them are likely to fall to zero. In my opinion, this is a correct statement. The volatility of the crypto market is very difficult to estimate, but many cryptocurrencies such as DeepOnion, Ethereum and many projected altcoins have a real utility in the real world.

Ethereum has its Erc20 tokens, which is currently being adapted by many new startups to realize their projects, or DeepOnion, which will play a leading role among privacy coins in the near future and already has online shop payment solutions and is constantly being developed further, with many new features coming like an Android wallet, VoteCentral for a community driven coin development and many more.

I think that in the foreseeable future many cryptocurrencies will really be separated from wheat chaff and we will experience that many cryptocurrencies, without proper and meaningful use, will lose their raison d' être and will thus become extinct, which according to what has been said again, that established cryptocurrencies and new ones, which contain a meaningful technique, will be put into a new focus and thus emerge strengthened from the mometric depression.

Coming to an end, the future remains very exciting and I recommend everyone to think about which cryptocurrency you will be investing in. I, for my part, am firmly in the saddle of DeepOnion and will keep on hodling!