Gary Cohn, former economic chief to Donald Trump, says Bitcoin may fail, despite the digital asset having more than a decade long history, growing adoption, and increasing value from mere cents to $19,550 today.
On being asked about his views on Bitcoin, which is on a tear, and how the digital asset and cryptocurrency fundamentally transform our economy, Cohn had the typical ‘love blockchain but hate bitcoin’ reply. Former Goldman Sachs President and Chief Operating Officer in an interview with Bloomberg on Tuesday said,
“When we talk about blockchain we come back and talk about the infrastructure, that’s the highways and the pipes that are necessary for bitcoin but they’re necessary for many other applications and I think they’re very useful and I’m very bullish on them.”
As for Bitcoin, he doesn’t have a “strong opinion” on the flagship cryptocurrency, which has a market cap of $360 billion. He said,
“In essence, I’m not a strong believer in bitcoin… it is a developing asset potentially and for all the reasons it’s a strong developing asset class it may fail.”
He further explains that part of an asset class’s integrity to a system is knowing who owns it, why it’s being transferred, and if it is used for legitimate causes or corrupt practices. The 60-year old said,
“The bitcoin system today has no transparency to it, 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.”
According to him, Bitcoin “lacks some of the basic integrities of a real market” because “you don’t know who owns it, you don’t know exactly how much exists today, how much has been mined how much has been lost, how much has been thrown away on hard drives because they don’t exist anymore so it.”
This is the weakest argument ever for starters, he is talking about cash, and second, if Cohn had bothered to get himself acquainted with Bitcoin, he would have known the most extensive network is a transparent one, and that’s why the different government agencies have been able to catch people trying to route their funds in BTC to avoid authorities.
Haters are just going to hate and miss being part of this revolution until it’s too late.