The chief investment officer (CIO) of the Goldman Sachs investment strategy group, Sharmin Mossavar-Rahmani, said in an interview with Business Insider the February 27 that crypto-currencies are in a bubble that, when it bursts, will only have 1% of world GDP

Mossavar-Rahmani, which guides the investment strategy for customers with more than $ 10 million in assets, said cryptocurrencies are "the hot topic" among its customers and colleagues. She said Goldman Sachs recognizes the opportunities that Blockchain technology can bring to many Fintech companies, but cryptocurrencies "in their current format" are "in a bubble".

In the interview, Mossavar-Rahmani referenced data from a public report of Goldman Sachs' Investment Strategy Group, comparing Bitcoin price trends (BTC) and from Ethereum (ETH) to the stock market bubbles of the past such as the TOPIX in 1990 and the Nasdaq in 2000.

Mossavar-Rahmani argues that TOPIX and Nasdaq look like "a flat line" compared to the crypto, and even compared to the infamous Tulip bubble in the early 1600s, the price of Bitcoin is too high. Mossavar-Rahmani added that the Ethereum price is "even more astronomical" because the bubble on the chart far exceeds that of Bitcoin.

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<img alt=" Standardized Levels" src = "https://cointelegraph.com/storage/uploads/view/56149efa0c3f5500564dadba04ced450 .png "title =" Standardized Levels "/>

Considering the impact of a" bubble bursting "cryptocurrency, Mossavar-Rahmani suggested that this would not lead to a global financial crisis because cryptocurrencies are a "Cryptocurrencies represent a much smaller share of the global economy, whether you compare it to US GDP or global GDP, it's less than 1% of global GDP" , Mossavar -Rahman said.

It admits as there have been important investments n build trade, infrastructure and hedge funds in the crypto space, when the bubble bursts, some people "will get hurt … But it's a tiny bit of global GDP. "

On January 31, Lloyd Blankfein, CEO of Goldman Sachs, denied that Goldman Sachs was going to open a cryptocurrency trading desk, even though The New York Bank has held an interest in a crypto Circle trading center since 2015.