A former adviser to Donald Trump has said that a global currency is definitely needed, but that it will not be Bitcoin. This is because of technological complications, that mean Bitcoin is limited; however, he believes that the technology that powers it could be incredibly important.
Gary Cohn, who is the former chief economic adviser for Trump voiced his opinions during an interview, where he said that the underlying technology was far more interesting than the virtual currency itself. Bitcoin was the first cryptocurrency to make use of blockchain technology, so as time has gone on, and more cryptocurrencies have been developed the flaws in the original have become more apparent.
Speaking of the cryptocurrency, Cohn said;
“I’m not a big believer in Bitcoin, I am a believer in blockchain technology…I do think we will have a global cryptocurrency at some point where the world understands it and it’s not based on mining costs or costs of electricity or things like that.”
As well as working for Trump, Chon has also been the president of Goldman Sachs, and his comments were made at a time of high volatility for Bitcoin, which is just one reason why many analysts believe that it simply would not work as a global currency.
Incidentally though, Goldman Sachs have actually just become the first major Wall Street bank to open a Bitcoin trading desk, which is set to go live in the near future. Speaking of this development, Matthew Newton, who is an analyst at eToro, said;
“This shouldn’t come as a huge surprise to anyone who has been paying attention to cryptocurrencies over the last 18 months…Any forward-looking financial institution needs to understand this technology and accept its enormous potential.”
Cohn has said that we need to be looking beyond Bitcoin, saying;
“It will be a more easily understood cryptocurrency…It will probably have some blockchain technology behind it, but it will be much more easily understood how it’s created, how it moves, and how people an use it.”