Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
volatility of the rate
Analytics

Goldman Sachs: cryptocurrency volatility prevents it from entering the asset class

27.08.2020
2 min read

Cryptocurrency rate volatility is the main minus of digital money

Digital currency has been a subject of debate since its inception. Some talk about its prospects and the imminent displacement of paper money, while others are afraid and point to the system’s imperfection. The other day the investment bank Goldman Sachs held a meeting where the disadvantages of investing in the crypt were discussed, and the key disadvantage was the high volatility of the rate. In addition, the weaknesses of digital money are widespread use for illegal transactions and lack of signs of a protective asset. In addition to this issue, the conference raised issues related to the development of the global economy, the prospects for gold and the risks of inflation.
Goldman Sachs experts stressed that cryptocurrency cannot be classified as an asset class. A number of arguments were mentioned to support these words. First of all, it was argued that in this case it is impossible to generate cash flows, as it happens with securities. Cryptocurrency also does not take part in GDP growth and does not affect the development of the country’s economy. The unstable correlations that are observed in the segment do not allow for diversification of investments. Besides, analysts do not see preconditions to use the crypt as a hedge-activ to prevent inflation. However, the main disadvantage is the volatility of the rate, and there is no evidence that its level is declining. As a confirmation of the last minus of digital money, experts cited the fall of the bitcoin, which occurred in March. Then, in just a day, its value has fallen by 37%.
An important point that hinders the spread of cryptocurrency is its participation in illegal activities. For example, Bitcoin and a number of other types of such money have been used for operations in financial pyramids, money laundering. The crypt is used to make settlements in the darknet and in cases of extortion.

volatility of the rate

Despite the fact that the issue of digital currency is limited, the number of such assets has no limits. There are six leading types of electronic coins, three of which are almost identical to each other. This statement applies to Bitcoin, Bitcoin Cash and Bitcoin SV.
The cryptosphere is still in its development stage, which in itself carries risks. For example, companies that use digital money for operations are not protected from hacker attacks. Most often, the option for storing a crypt is chosen by special exchangers, which are exposed to attacks by cyber criminals. In the last 9 years, even large trading floors have been hacked approximately 144 times.
However, not everyone agrees with the opinion of Goldman Sachs. Last month Bloomberg analysts, on the contrary, described the prospects of Bitcoin and spoke about it as new gold. Experts argue this point of view by the growth in demand for cryptocurrency, which affects the decline in its volatility.

Tags: Analytics
0
Previous Post Company delisting: in which cases it is needed Next Post Brazil's largest oil and gas company Petrobras

You Might Also Like

The global financial crisis
Analytics
An analyst at Finam: should we expect a global financial crisis?
16.10.2021
chaslau koniukh forecast
Analytics
Chaslau Koniukh: the dollar will continue to weaken, despite current processes
01.09.2020
Investments in biotechnology
Analytics
Investment in biotechnology reaches record highs: analysis of the Far Eastern High Technology Fund segment
29.05.2021
liquid resources
Analytics
Economists at Deutsche Bank: liquid resources of the NWF are being depleted
13.06.2020
platinoids palladium
Analytics
Dmitry Glushakov, VTB-Capital: why the demand for platinoids is growing
19.01.2022
European currency
Analytics
Experts: European currency is not interesting for Russians
15.03.2021

Recent Posts

  • 1Laos cryptocurrency exchanges
    Two cryptocurrency exchanges in Laos received approval from the country’s Central Bank
    24.06.2022
  • 2Digital luxury
    Digital luxury: perspectives for luxury goods in virtual space
    23.06.2022
  • 3SWIFT considers interaction with digital currencies
    SWIFT plans to interact with digital currencies
    22.06.2022
  • 4The minimum income in Latvia will change
    The government intends to revise the minimum income in Latvia
    21.06.2022
  • 5Domuschiev brothers
    The Domuschiev brothers: the success story of Bulgaria’s first billionaires
    20.06.2022

Popular Posts

  • Skolkovo analysts: the Russian energy market is suffering losses
  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Social media

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Spokesperson
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Spokesperson
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Spokesperson
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Spokesperson
16.05.2020

Latest Posts

OpenSea NFT platform
OpenSea’s NFT platform hits the $13.3 billion mark
25.06.2022
Laos cryptocurrency exchanges
Two cryptocurrency exchanges in Laos received approval from the country’s Central Bank
24.06.2022
Digital luxury
Digital luxury: perspectives for luxury goods in virtual space
23.06.2022

Chaslau Koniukh

Expert Chaslau Koniukh

Chaslau Koniukh – an expert in marketing and project management, IT consulting, international investments, investor, financial analyst. A commodity trader, private consultant, entrepreneur, lecturer, author of several articles on the stock market.

Popular Posts

  • Skolkovo analysts: the Russian energy market is suffering losses
  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.
  • Chaslau Koniukh: trade war with China and its risk for the world market
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram
  • Biography

Chaslau Koniukh – an expert in marketing and project management, international investments, financial analyst.

Social media

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics