‘Goldie’ says, Expect Further Declines in Cryptocurrencies
Cryptocurrencies do not fulfill any of the traditional roles of a currency, says Goldman Sachs
Bitcoin is looking to consolidate the recent momentum that has seen the # 1 digital currency rise by more than 40% since the beginning of July.
Monday afternoon’s declines comes on the back of a Goldman Sachs Group (NYSE:GS) note that predicts the recent turnaround in Bitcoin and other digital currencies will be short-lived.
“We expect further declines in the future given our view that these cryptocurrencies do not fulfill any of the three traditional roles of a currency: they are neither a medium of exchange, nor a unit of measurement, nor a store of value,” wrote the CIO of the bank’s Investment Strategy Group.
After briefly slipping below $8,000, a single bitcoin BTCUSD, -0.25% was last worth 8,130.07, down 0.8% since Sunday 5:00p. EST on the Kraken exchange.
Despite having a big July, a survey by Gallup and Wells Fargo (NYSE:WFC) found that while Bitcoin, which proponents argue could 1 day be the backbone of the global payments system, is gaining attention, it is still grappling with commensurately wider adoption, or usage.
Of the 96% of respondents who had heard of Bitcoin, only 2% of people own Bitcoin and 72% have no interest in ever buying the digital currency.
“While ownership is more common among wealthier investors, just 3% of those earning $90,000 or more report owning bitcoin, compared with less than 1% of lower-income investors,” she said.
Fully 75% of participants view Bitcoin as very risky and 23% somewhat risky.
The survey was part of the Q-2 Wells Fargo/Gallup Investor and Retirement Optimism Index survey, which was completed by 1,921 US investors aged 18 years or older and conducted between May 7-14.
Bitcoin futures finished Monday in the Red.
The CME August contract BTCQ8, +0.37% closed down 1.2% at 8,100
The Cboe contract XBTQ8, +0.49% finished the day down 0.8% at 8,130.
Altcoins, or digital currencies other than bitcoin, have followed Bitcoin lower
Ether ETHUSD, +0.40% is down 2.7% at $453.20
Bitcoin Cash BCHUSD, -0.18%is down 1.8%, trading at $810.80
Litecoin LTCUSD, -0.39% has lost 2.1% to $81.86 and
Ripple’s XRP coin XRPUSD, -0.14% was trading at 44 cents, down 1.8%.
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