The leading US bank Goldman Sachs said the condition of the bitcoin virtual currency has now reached the bubble.
This condition is when the price of an investment instrument soaring so high that it threatens financial stability.
In fact, Goldman Sachs declared bubble bitcoin more powerful than the bubble dot-com and bubble tulips in the Netherlands that occurred in the 17th century ago. This was disclosed Goldman Sachs in his research report to investors.
Quoting CoinDesk on Wednesday (24/1/2018), Goldman Sachs analysts warned about the increase in the price of virtual currency, including bitcoin and ethereum price movements, as well as an increase in share prices of companies associated with blockchain.
One such company is like The Crypto Company whose stock price spikes more than 17,000 percent before the Securities and Exchange Commission of the United States (SEC) suspends its trade.
"We assume the concept of digital currency supported by blockchain technology has such advantages as global ease of execution, lower transaction costs, reduced corruption because all transactions can be traced, security of ownership, and so on," wrote Goldman Sachs.
However, added Goldman Sachs, bitcoin actually did not provide such benefits. One bitcoin transaction can be processed for 10 days and the price varies depending on the trading center.
In fact, in the past year, there was a price difference of up to 4,000 US dollars or equivalent about Rp 53.6 million between one trade center with another at the same time.
In addition, the transaction costs are also high. However, Goldman Sachs sees no risk that bitcoin inflation and other virtual currencies will have an impact on the US and global economy.
"We do not believe that the drop in bitcoin prices will have a major effect on the economy or global financial markets," Goldman Sachs
