One of the top managers at the US investment bank Goldman Sachs says that certain crypto coins could become ‘very useful’ in the future. Unfortunately for the believers in crypto coins, crypto coins are created by central banks. The current generation is an immense bubble, according to the CEO.
In an interview with Business Insider, Sharmin Mossavar-Rahmani, chief investment officer at the Goldman Private Wealth Management Unit, said that crypto coins in their current form are a bubble.
The price for Bitcoin is astronomically high. The price of Ether is much higher. These valuations are not logical according to us, says Sharmin Mossavar-Rahmani. But that does not detract from the fact that the technology of the crypto coins awaits a great future.
Crypto coins from central banks can be very useful. They can ensure lower transaction costs. Crypto coins from central banks may become even more useful in the future than the current fiat money.
But the current generation of cryptocurrences will disappear. When the bubble empties, the impact on the parties involved will be great, but on a global scale this will be better. Crypto coins account for less than 1% of global GDP. The impact is therefore minimal for the global economy.