A Goldman Sachs senior chairman has asked why crypto is not having a moment despite “the inflating U.S. dollar” and governments demonstrating that they can and will freeze accounts under certain circumstances. “Not seeing it in the price, so far,” he said.
Goldman Sachs’ Blankfein Has a Question About Crypto
Lloyd Blankfein (currently the Goldman Sachs Group’s senior chairman) tweeted about crypto Sunday. Blankfein previously served as Goldman Sachs’ chairman and chief executive officer from 2006 through September 2018.
He said that crypto is something he was still open to considering. However, he questioned why it is not “having a moment” given “the inflating U.S. dollar” and governments showing that they “can and will under certain circumstances freeze accounts and block payments.” He opined, “Not seeing it in the price, so far…”
Canadian authorities have frozen Canadian accounts that were linked to Freedom Convoy trucker protests. Additionally, Russia has been invading Ukraine since then. A number of nations are imposing sanctions on Russian people and entities. This could include the freezing of accounts that may be tied to these individuals or entities.
Bank accounts and cryptocurrency assets can be frozen. However, decentralized crypto currencies like bitcoin or ether cannot be stored directly in the exchange network. Coinbase and Kraken’s CEOs advised anyone concerned about crypto assets being lost to transfer them from exchanges and take them into their own custody. U.S. Senator Ted Cruz described: “One of the reasons why I’m so bullish on bitcoin is because it is decentralized and not controllable.”
Inflation is a topic that many see as a hedge. Paul Tudor Jones (hedge fund manager) said last October that he preferred bitcoin over gold to be an inflation hedge. Blankfein’s investment bank, Goldman Sachs, said in December 2020 that bitcoin is “the retail inflation hedge.”
Many People Reply to Blankfein’s Crypto Question
Many people responded to the tweets of Goldman Sachs’ senior chairman. Many people agreed with him about the need for bitcoin to rise more, while some others said that BTC’s value has already increased tremendously compared to other assets.
“Interesting observation and I kind of agree,” one Twitter user wrote. “Although, the only thing having a moment right now is oil, energy, and wheat.”
Tuur Demeester, a crypto analyst wrote:
Bitcoin’s value has increased by 10,000% within 72 months. Compounding annual returns are 116%. Please take a moment to do so.
Another Twitter user told Blankfein: “Oh it’s definitely in the price, Lloyd. Zoom out Zoom out! [Ruby on Rail creator David Heinemeier Hansson]And the remainder of the 2022 converts begin buying in sizes. The adoption wave is bigger than that of Druck [Stan Druckenmiller]PTJ [Paul Tudor Jones] started buying in 2020.”
Chris Burniske, a partner at VC firm Placeholder, commented: “Don’t paper hands it, Lloyd.”
Some are less skeptical of cryptocurrency. One tweeted: “Crypto is on the verge of being destroyed, by restrictive government regulation, as BTC and other cryptocurrencies are being used by Russian oligarchs as a vehicle for mass money laundering and evasion of sanctions. That is the ‘moment’ we are probably about to see.”
Digital asset manager Eric Weiss replied:
It’s just a matter of education. So few people understand bitcoin’s value proposition. You do. Lloyd, please hoot with us. It’s possible.
Do you have any thoughts on the Goldman Sachs senior chair asking questions about crypto? Please comment below.
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