Cryptocurrency: for Gary Cohn the world will have a "global", but it will not be Bitcoin. Former Goldman Sachs manager doubtful about Bitcoin's future.
The former president of Goldman Sachs, Gary Cohn, he said a few hours ago that he believes the world will have a global cryptocurrency, but that this will not be Bitcoin.
"I'm not a big fan of Bitcoin, I'm a fan of blockchain technology"- Cohn told Bob Pisani of CNBC in an interview with" Squawk on the Street ". "I think we will have a global cryptocurrency, which is not based on extraction costs or the cost of electricity or anything like that" - he continued.
Cohn - who resigned in early March from his role as chief economic adviser to the Trump administration - evidently refers to the process of creating Bitcoin, mining, an energy-intensive activity that requires high-level specialized hardware and access to high energy resources.
The reference is also to the fact that cryptocurrency is only the first application of blockchain technology, which eliminates the need for a third party broker by quickly creating a secure and permanent record of transactions between two parties. The technology therefore allows Bitcoin users to be able to send funds across borders, quickly at low cost. However, Bitcoin has also encountered particularly difficult challenges, such as handling high volumes of transactions.
So, sanctioned this, Cohn expects the digital currency of the future to be simpler than Bitcoin. "It will be a more easily understood cryptocurrency" - he said - "It will probably have the blockchain technology behind, but it will be much easier to understand how it is created, how it moves and how people can use it ". Rising interest in Bitcoin and expectations for large-scale institutional investments helped push prices up more than 13 times last year.
Cohn's former employer, Goldman Sachs, is one of the few companies on Wall Street to make a deliberate foray into cryptocurrencies. Last month, the investment bank had hired ex-trader Justin Schmidt to head the digital goods markets in the Goldman securities division.