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Goldman Sachs analyst: some digital currencies have no intrinsic value and will die out

One of the high-level analysts at Goldman Sachs, Steve Strongin, believes that cryptocurrencies do not have any intrinsic value and this is why the fate of some altcoins is grim. Those cryptocurrencies which act as one asset class will not survive over time, Mr. Strongin insists.

This largely differs from the classic “Bitcoin is a bubble” view. In the most notable occasion, it has been expressed by legendary investor Warren Buffett, while the current leader of Goldman Sachs Lloyd Blankfein implied last year that he does not trust this cryptocurrency and its strangely volatile behavior, even though noting that he had been wrong about other innovations before.

While some cryptocurrencies, especially those created for entertainment rather than for some real commercial purposes, can indeed drastically drop in the future, Mr. Strongin implied that there would be crypto survivors as well. This resembles the consequences of the dotcom market crash: while some overhyped projects indeed failed, the Internet is still alive and there are still some dotcoms existing.

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