Goldman Sachs warns the clients about the crypto bubble

Goldman Sachs published a 108-page long document with speculation about the unfortunate future of the cryptocurrencies
23 January 2018   173

The document titled “(Un)Steady as She Goes” was sent out by the famous American financial corp to warn the investors about the grim future awaiting cryptocurrencies. Reportedly, it was sent out to the wealthiest clients of The Firm to round up the events of the last 12 month surrounding Bitcoin and other prominent coins.

The paper was comprised by Sharmin Mossavar-Rahmani and Brett Nelson, both of whom are senior officials at the Investment Strategy Group Goldman Sachs. While the fearmongering and naysaying are ripe throughout the document, there are several good points to consider. While they admit, that technology behind the crytpocurrencies, namely blockchain, is valuable and useful for the future development in different spheres, they go to say that the craze around the whole topic of crypto is overrated and will blow over like any other flight of fancy in the past has done.

As usual with crypto fearmongering, there is a comparison with Dutch “Tulip mania” which we've already seen done a thousand times. There is also a point made about “Stock bubbles” for companies who announced some type of affiliation with blockchain and cryptocurrencies. The Long Blockhain (formerly a Long Island Ice Tea company) has been on the news because of that and has seen their share price rise rapidly. The same goes for the former sport bra company now proudly presented as the Crypto Company. There is no guarantee, that such kind of buff will survive the test of time, the authors point out.

And their main gripe is, actually, not the crypto as a whole, but Bitcoin in particular, because while the advantages of cryptocurrency are apparent, such as transparency and traceability, ease of execution globally, safety of ownership. But Bitcoin doesn't provide anything from this list, on the contrary, the rising TX fees, long settlements, and hackers' recent interest all really contribute to the scepticism, expressed by Mossavar-Rahmani and Nelson.

Iranian Central Bank Doesn’t Recognize Bitcoin as Official Currency

The Central Bank of Iran announced that it has never recognized Bitcoin as an official currency and conducts no transactions in it or other cryptocurrencies  
22 February 2018   8

Last year, the Iranian government was interested in utilizing cryptocurrencies as a way of bypassing economic sanctions levied against the country. Today it completely changed its mind. The Central Bank of Iran announced that it will never recognize Crypto as official currency.

The bank informed citizens about risks of making investments because there is a chance to lose financial assets. Currently, the bank is cooperating with other institutions to develop mechanisms to control and prevent the use of cryptocurrencies in the country.

The wild fluctuations of the digital currencies along with competitive business activities underway via network marketing and pyramid scheme have made the market of these currencies highly unreliable and risky.

The Central Bank of Iran

However, there is some positive news. Today, Iran’s Information and Communications Technology (ICT) Minister Mohammad-Javad Azari Jahromi informed about the development of a local cryptocurrency by Post Bank. Unfortunately, the stage of research is not stated.