During an interview with Business Insider, Sharmin Mossavar-Rahmani, chief investment officer for Goldman's Private Wealth Management unit noted that in her opinion, cryptocurrencies in their current format are in a bubble.
The bitcoin prices are astronomical. Then we compare that to the ether, and ether is even more astronomical. So clearly, these valuations don't make sense to us.
Furthermore, Mossavar-Rahmani stated that in future such digital currencies would be more useful than the coins in existence today. She said that there is a room for a digital currency, for example, sponsored by one of the central banks. In her opinion, it could be very useful and it could reduce transaction costs. But, the existent currencies can't do that.
She went on to speculate about the impact of a potential downturn in the cryptocurrency market on the wider economy.
So in terms of the impact, it'll have some impact. There are a lot of people who have set up various exchanges, infrastructure, hedge funds in that space, so obviously, they will get hurt. But it's a very, very small part of global GDP.