Last Updated on February 1, 2021 by Ope Quadri
Bitcoin lacks some of the basic integrity of real market, former president of Goldman Sachs Gary Cohn has said in a recent interview.
Cohen, who is the former economic advisor to President Donald Trump before his resignation in 2018 warned crypto investors that bitcoin may fail.
In an interview with Bloomberg, the economist submitted that he doesn’t believe in bitcoin because the most valuable digital asset lacks transparency needed in “real market.”
When Emily Chang asked him, “how bullish are you on bitcoin and cryptocurrencies and how much do you believe they will fundamentally transform our economy?” he replied saying, “…And for all the reasons it’s a strong developing asset class, it may fail.”
The former Goldman Sachs executive stated that part of the integrity of an asset class or part of the integrity of a system is knowing who owns it, and knowing who has it, and knowing why it’s being transferred.
He asked, “Is it being used for legitimate causes, is it being used for good, or is it being used for illegitimate causes, is it being used in corrupt practices in corrupt ways?”
Bitcoin has no transparency
Cohn said bitcoin has no transparency “So there are a lot of people that question why would you need a system that does not have an audit trail, does not have integrity, you don’t know who owns it”.
Expresses optimism about blockchain
While slamming the idea behind bitcoin, the former Trump’s ally, however, says blockchain is the highways and the pipes that are necessary for many other applications, describing blockchain technology as “very useful.”
Bitcoin Enthusiasts React
Cohn’s comment on bitcoin has generated backlash on social media, some of the bitcoin believers described him as an ignorant who doesn’t know how bitcoin operates.
One of them Corey Chambers says “Gary Cohn is not a Bitcoin expert” describing him as being a corrupt politician who is attempting to criticize Bitcoin.
Chambers says further, “but his negative points apply much more to the U.S. dollar than to Bitcoin. Bitcoin has an open-source, public distributed ledger. The dollar does not.”
He explains, “Bitcoin has a limited supply to maintain value. The dollar has an oversupply and rapidly diminishing value. The dollar is the #1 currency used by criminals worldwide. Bitcoin is not,” Chambers says.
Another bitcoin user, Jorey Villano says, “Every negative aspect he mentioned about bitcoin has been with cash for like the past decades”
At the time of this report, bitcoin is trading at $18,800 on some of the major trading platforms. One bitcoin is predicted to break $20K all-time high before the end of the year.