Plastic money and digital currency have taken a huge upsurge in the financial market. Bitcoin, the largest cryptocurrency has seen a roller coaster ride in 2017, with its prices soaring new heights or falling by 20%. But after much anticipation, in 2017, the prices of bitcoin dropped by 10% in last week, and the current valuation is less than 43.4% of the earlier value. Cryptocurrency traders and owners are now in a dilemma whether to consider this fall as the decline of cryptocurrency or take is just as a volatile downfall.
With everyone having frowning lines on their forehead, Goldman Sachs interviewed several experts of cryptocurrency like the Dan Morehead (CEO), Pantera Capital to have an understanding of bitcoin in the digital market. At the interview, Dan stated that he believes this upsurge to be a part of a volatile pullback. He further states his disbelief that bitcoin is a bubble owning to the fact that majority institutional investors have no exposure at all.
But the statement by Morehead was contradicted by Steve Strongin (Global Investment Research Head, Goldman Sachs). The latter points that future of bitcoin will be doomed very soon although, it is backed by the powerful technology named as blockchain that holds immense worth in the corporate world. He further comments that he is unaware of bitcoin’s survival but believes that in long run parts of bitcoin will evolve considerably. Strongin is also skeptical about first mover advantage, which is considered to be advantageous by many investors over their competitors.
If Strongin’s assumptions are based on being true then sudden fall of Bitcoin Investment Trust by 38%, GBTC by 1.86% and several others, might just be the start of world’s cryptocurrency downfall world’s largest cryptocurrency.