Unproven Status and Volatility of the Cryptocurrency

By Steven Anderson June 30, 2019 Off
market volatility

A recent report from Kaspersky has to state that many people are not yet ready to adopt cryptocurrency.  There are more than 1500 cryptocurrencies already on the internet.  Facebook has not thrown its hat into the cryptocurrency ring.

Kaspersky has studied customer attitude, and they have surveyed more than 13,434 people and in nearly 22 countries during October and November.  Bitcoin is the most notable of all the cryptocurrencies.  The cryptocurrency has touched upon the market capitalization of $100 billion.  This is nearly 6.9 million INR.  About 84% of the users have never purchased the cryptocurrency.  About 35% of them believe that the cryptocurrencies are a fad.  This is because of the unproven status and volatility of the cryptocurrency.

There was a great “crypto crash” in the year 2018.  This was a point a time when Bitcoin did lose more than 65% of its value.  There were other digital currencies which were going through similar falls in the price pattern.  There are only 19% of them who use it for making their online payments.  There were 15% of the users who were victims of the digital currency scams.

Just like JP Morgan, Goldman Sachs might as well launch their cryptocurrency.

David Solomon, CEO of Goldman Sachs, stated that they are into a lot of research concerning the concept of “tokenization.”

Solomon stated that he has a lot of belief on the potential of the blockchain based cryptocurrency, thereby making way for frictionless cross-border payments.  However, Goldman Sachs just like JP Morgan believes that real fiat currencies should back the money.

There is likely to be a definite change shortly.  Solomon further added, “I think regulators around the world are watching what’s going on. They wonder how it will work and are very attentive to payment flows. There will be a change in regulation, that’s for sure.”

Solomon also stated, “Many people are looking in this direction. But it is too early to say which platform will prevail. Whether [Facebook] is this platform or one of the other fifty that people are watching that will make the most progress, I cannot tell you.”

When it comes to banks willing to join the cryptocurrency race, Solomon opines that banks should be innovative failing which they might disappear altogether.

However, the new people talking about their venture into the cryptocurrency space will take a lot of time to materialize. And they are very far from the launch.