Goldman Sachs’ Lloyd Blankfein feels he can explain cryptocurrency revolution in hindsight

In a recent interview with Bloomberg, the CEO of Goldman Sachs, Lloyd Blankfein shared his views on the future of crypto-economy. The veteran economist began with discussing the severity of threats posed at the system by cryptocurrencies. According to him, cryptocurrencies are not a ‘systematic issue’ currently.

Blankfein cited the inception of cell phones as an example to make a point that it is hard to predict what an invention is worth until it has been introduced as a utility. He added that any forecast regarding the future success of cryptocurrencies is only possible through postulation or hindsight, and further connected it with evolution, saying:

“You start out with gold as money, and people only take hard currency and you make gold coins. A gold coin is worth five dollars. You had five dollars in gold and eventually they would give you a piece of paper with a promise that there was five dollars in gold to back the five-dollar piece of paper and you could redeem it. Then they gave you a piece of paper and said there’s five dollars of gold but you can’t redeem it.”

He continued the dialogue with a sarcastic statement indicating the recent scenarios of our economic system:

“And at some point they give you a piece of paper and say it’s worth worth five dollars, you can’t redeem it, you don’t have it. We don’t have it even if you wanted it. And we’re still doing it today”

In Blankfein’s opinion, if we as a society could go through this “morphing” from gold coins to fiat currency where the center makes the most important decisions, then we cannot entirely erase the possibility of a consensus currency. He wisely closed the discussion, saying:

“I’m not in this school of saying – because it’s uncomfortable with me, because it’s unfamiliar, this can’t happen. That’s so arrogant.”

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