Many argue that the boom of cryptocurrencies, which has been little more than a year very similar to the dot com bubble, in which most of the projects went bankrupt. However, Bernstein analysts disagree.
In their report, which they published in Friday, they argue that the blockchain industry creates a “parallel financial networks” that exist as alternatives to existing systems. Although these new platforms still are “on the periphery of the mainstream economy”, the authors of the report believe that “over time they begin to scale, there will the talent flow, and then and capital.”
The report argues that new technology is an “innovative experiment”. The authors also note that it is not without its problems, the main of which is the high level of fraud associated with ICO projects.
At the same time, analysts at Bernstein believe that the market scriptaction is global, it is the “system of natural correction”, which was the period of the dot com boom of 2000-ies, the shares of which are traded on regulated exchanges with limited working time.
A skeptical point of view of regulators, as well as the high level of fraud does not allow to recognize it as a market innovation experiment to create a new financial system. But – the market acts as a correction for bad participants, in contrast to the dot com bubble, where feedback on weak business models come with a delay. On the cryptocurrency markets occur every day of the bankruptcy and cobble together a fortune.
The report also mentions some specific crypto currencies:
Bitcoin is the first global, digital, non-state and no uncontrolled Central on a financial asset with a market price that changes round the clock, and facilitates international money transfers and allows you to make them in less than an hour at a fee of 0.5-1%. Such conditions can offer no Bank and no international system of money transfers.