Donald Trump is known for his obsession with gold. The interior of Trump Tower is covered in the precious metal, and it perfectly illustrates what he stands for: big business. Now one of his ex-advisors has come out in favor of a new aspect of big business: blockchain technology.
Naturally, the US president has hired some of the most knowledgeable people within finance to help his administration carry out its purpose. His former chief economic advisor, who only recently left the cabinet last month, was Gary Cohn, a former president and COO of Goldman Sachs.
Gary Cohn believes blockchain is the future
Cohn was recently interviewed by CNBC, where he gave his opinion on cryptocurrencies and the underlying blockchain technology. Whilst he did not have much faith in the future of Bitcoin, he did speak highly of blockchain technology and its many uses.
He went so far as to say that blockchain very well could form the underpinnings of the future global economy. The only issue with it is the numerous flaws associated with the current incarnation of the blockchain.
Power is still a problem
The amount of power it takes to mine for cryptocurrencies, and the relatively slow speed at which transactions are conducted, were cited by Cohn as some of the drawbacks. Fortunately, every new ICO is taking steps to improve on previous iterations of the blockchain, so perhaps those flaws will disappear with time.
Cohn said that he did not think the future global economy would be based on the energy costs associated with cryptocurrency, but rather that some form of cryptocurrency would eventually replace the current fiat money system.
He is of course not the only person in finance who has opened his eyes to the huge potential blockchain technology offers. His ex-colleagues at Goldman Sachs have also realized that it is time to get on the blockchain bandwagon.
Goldman Sachs opens Bitcoin trading desk
Just a week ago, it was officially announced that Goldman Sachs would be opening a Bitcoin trading desk. It is the first major Wall Street bank to do so, and their first “digital assets trader” will be Justin Schmidt.
Like Gary Cohn, many in Goldman Sachs have been skeptical about the concept of trading in cryptocurrencies. However, due to the enthusiasm displayed by many of their clients, the bank has felt pressured into trading in Bitcoin.
Those already heavily involved in the cryptocurrency community, like eToro’s Matthew Newton, are not surprised that Goldman Sachs is joining their ranks. He said:
“Any forward-looking financial institution needs to understand this technology and accept its enormous potential.”
What is almost certain is that blockchain technology, and the cryptocurrencies it keeps spawning, are not going anywhere anytime soon. With several major tech firms and banks across the world joining the crypto-community, the only way is upwards and onwards.
What do you think? Will more major Wall Street banks follow in the footsteps of Goldman Sachs? Is Gary Cohn right to think that Bitcoin won’t be the future of the global economy? Leave your comments below!