A senior chairman of Goldman Sachs has asked why the crypto isn’t having a moment despite “US dollar inflation” and governments demonstrating they can and will freeze accounts under certain circumstances. “I don’t see it in the price, so far,” he said.
Goldman Sachs’ Blankfein has a crypto question
Lloyd Blankfein, who is currently Senior Chairman of Goldman Sachs Group, tweeted about the crypto on Sunday. Blankfein previously served as Chairman and CEO of Goldman Sachs from 2006 to September 2018.
He explained that he keeps an open mind about crypto. However, he wondered why he didn’t have ‘a moment’ given ‘US dollar inflation’ and governments showing that they ‘can and will, in certain circumstances, freeze accounts and block payments “. He said: “Not seeing it in the price, so far…”
Recently, the Canadian government froze accounts linked to the Freedom Convoy truckers’ protest. Additionally, since Russia began its invasion of Ukraine, an increasing number of governments are imposing sanctions on certain Russian individuals and entities, which may include freezing accounts linked to them.
While bank accounts and crypto assets held on exchanges can be frozen, decentralized cryptocurrencies, like bitcoin and ether, cannot be frozen directly within the network. The CEOs of crypto exchanges Coinbase and Kraken have advised anyone worried about their crypto assets being frozen to move them off the exchanges and keep them themselves. US Senator Ted Cruz described, “One of the reasons I’m so bullish on bitcoin is that it’s decentralized and uncontrollable.”
When it comes to inflation, many people see bitcoin as a hedge against rising inflation, including well-known hedge fund manager Paul Tudor Jones, who said in October last year that he preferred bitcoin to gold as an inflation hedge. Blankfein’s investment bank, Goldman Sachs, said in December 2020 that bitcoin was “the retail inflation hedge”.
Many People Answer Blankfein’s Crypto Question
The senior chairman of Goldman Sachs received many responses on Twitter. Some people agreed with him that bitcoin price should have risen much more while others argued that BTC has already increased enormously, especially compared to other assets.
“Interesting observation and I tend to agree,” wrote one Twitter user. “Although the only thing having a moment right now is oil, energy and wheat.”
Crypto analyst Tuur Demeester wrote:
Bitcoin is up 10,000% in 72 months, with compound annual returns of 116%. Please give him a minute.
Another Twitter user told Blankfein, “Oh it’s definitely in the price, Lloyd. Zoom out! Now imagine when you, Ken Griffin, DHP [Ruby on Rail creator David Heinemeier Hansson], and the rest of the new 2022 converts are starting to buy in size. This wave of adoption will be greater than when Druck [Stan Druckenmiller] and PTJ [Paul Tudor Jones] started buying in 2020.
Chris Burniske, partner at venture capital firm Placeholder, commented: “Don’t do it on paper, Lloyd.
Some people are more skeptical about cryptocurrency. One tweeted: “Crypto is about to be destroyed, by restrictive government regulation, like BTC and other cryptocurrencies are used by Russian oligarchs as a means of mass money laundering and sanctions evasion. This is the “moment” we are probably about to see.
Digital asset manager Eric Weiss responded:
It’s just a matter of education. So few people understand bitcoin’s value proposition. You clearly do. Stay with us, Lloyd. We will get there.
What do you think of the Goldman Sachs senior chairman’s question on crypto? Let us know in the comments section below.
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