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A former economic adviser to President Donald Trump and president of Goldman Sachs shared his opinion on bitcoin. He says the cryptocurrency “lacks some of the basic integrity of a real market”, warning it “could fail”.
Gary Cohn thinks Bitcoin can fail
Former White House chief economic adviser Gary Cohn said in an interview with Bloomberg’s Emily Chang, released Monday, that bitcoin “could fail.”
Cohn served as president and chief operating officer of Goldman Sachs for 26 years. He left the company in 2016 to become President Donald Trump’s chief economic advisor, a position from which he stepped down in 2018.
During the interview, Cohn was asked: “How optimistic are you about bitcoin and cryptocurrencies and how much do you think they will fundamentally transform our economy?” Admitting that he doesn’t have a strong opinion on bitcoin, he said: “I don’t really believe in bitcoin.” The former Goldman Sachs executive elaborated:
It is a developing asset class, potentially. And for all the reasons it’s a fast-growing asset class, it could fail.
President Trump’s former top economic adviser explained that “part of the integrity of an asset class or part of the integrity of a system is knowing who owns it, knowing who owns it, and knowing why it’s being transferred. And is it used for legitimate causes, is it used for good or is it used for illegitimate causes, is it used in corrupt practices in corrupt ways? “
Stating that “The bitcoin system today has no transparency,” the former president of Goldman Sachs said: “So there are many people who wonder why you would need a system that has no audit trail, has no integrity, you don’t know who owns it, you don’t know exactly how much exists today, how much has been extracted, how much has been lost, how much has been thrown away on hard drives because they no longer exist “. Cohn concluded:
So it is [bitcoin] it lacks some of the basic integrity of a real market.
While pessimistic about bitcoin, Cohn said he was “very optimistic” about blockchain technology, pointing out that they are the “highways and pipes needed for bitcoin” and “for many other applications”. He added: “They are very useful”.
Bitcoiners react to Cohn’s comments
Bitcoiners on social media were amazed and amused by Cohn’s comments on bitcoin. Satoshi Nakamoto Institute co-founder Pierre Rochard tweeted in response: “I formally challenge Gary Cohn to a televised debate on the verifiability of Bitcoin. Bring it to me. “Castle Island Ventures partner Nic Carter wrote that Cohn saying” bitcoin falls short of the verifiability domain “is” mystifying “.
Bob Burnett, Bitcoin evangelist and president of Divvy Systems and Barefoot Mining, tweeted to Cohn: “There are a lot of mistakes here. We know exactly how many bitcoins are mined. We know exactly how many bitcoins are left to mine and when they will be mined. It does not lack transparency, it defines it. And that no one owns it, that’s the point. “
What do you think of Gary Cohn’s point of view on bitcoin? Let us know in the comments section below.
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