‘Goldie’ says, Expect Further Declines in Cryptocurrencies

‘Goldie’ says, Expect Further Declines in Cryptocurrencies

‘Goldie’ says, Expect Further Declines in Cryptocurrencies

$BTCUSD, $ETHUSD, $GS, $WFC

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.

“Bitcoin has yet to make significant inroads into any major subgroup of US investors,” wrote the senior editor at Gallup. “Just 3% of men, 1% of women, 3% of those aged 18 to 49 and 1% of those aged 50 and older report owning it,” according to the survey.

“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.

Elsewhere

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%.

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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