As a hyper volatile asset, cryptocurrencies have been known to suddenly drop at any given moment.
In early February, every large cryptocurrency was down by 25%.
While bitcoin’s value plunged by a staggering 65%…
Ethereum, being the second largest crypto, was also underperforming.
And crypto values may continue to drop in the near future.
The dubious nature of cryptos
Cryptocurrencies have always been very unpredictable due to a lack of regulation and volatile price markets.
Bitcoin could be vulnerable to fast change as a result of this.
Recently, a ban on anonymous crypto trading was implemented by South Korea to regulate bitcoin.
This will allow them to crack down on criminal activity surrounding the secret nature of bitcoin trading.
Goldman Sachs head of Global Investment Research Steve Strongin states:
‘Whether any of today’s cryptocurrencies will survive over the long run seems unlikely to me, although parts of them may evolve and survive.’
Strongin believes that crypto will likely trade to nothing due to a lack of intrinsic value.
He compared crypto to the dotcom bubble of the late 90s, as investors may be faced with very similar effects.
If Strongin’s predictions become true, then crypto investors may be in for a rough ride.
Cryptocurrency forms are competing to not only survive, but to come out the other end in a more successful form.
Strongin notes that the lack of a clear winner makes it very difficult to predict a definitive winner of the crypto showdown.
So what now for cryptos?
New cryptos may take up a completely different form than the ones available now.
And like Amazon and Google continued to thrive years after the dotcom crash, some cryptos may experience a similar fate.
Cryptocurrencies are in for an interesting ride this year.
For, Money Morning
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