Cryptocurrency Report from Goldman Sachs! Who Holds the Key to Success?

With the bankruptcy of FTX, trust in cryptocurrencies has been shaken. So, was this failure a failure of blockchain technology or of malicious actors?

Analysts at Goldman Sachs, who focused their latest cryptocurrency report on this issue, said that blockchain technology remains reliable, but the lack of regulation around this trust point could create new victims.

In the report, which stated that cryptocurrencies attract many inexperienced investors due to their highly volatile nature, it was stated that fraud cases are at a higher level than the “dot-com” bubble.

“Cryptocurrencies are a highly volatile and relatively new asset class. These assets give people hope of getting rich soon and making millions. It attracts many inexperienced investors who do not want to miss this opportunity.

Regulations remain in a tight spot for now, as it has not yet been determined how damaging cryptocurrencies can be. This allows it to contain more widespread fraud than the dot-com bubble in well-regulated stock markets.”

The report stated that investors should use an exchange to gain exposure to cryptocurrencies, and despite all the regulatory shortcomings, people are willing to invest money in the ambition to earn more.

The report stated that despite many bankruptcies and collapses in 2022, cryptocurrencies can thrive and prosper. According to Goldman analysts, the key to this success is in the hands of policy makers. If the regulations are done right, the future of cryptocurrencies looks bright.

According to analysts, the point of trust here is blockchain technology. The report reminds that regulators should not interfere with blockchain.

“It’s not the untrusted blockchain itself. Regulators should not interfere with this trust area.

When a token is used as a financial instrument, it must be regulated and classified like a security. Otherwise, crypto fraud will continue.”