Cohn clearly explained to CNBC during an interview last Tuesday, that he tends to fall into the Blockchain believers category rather than the Bitcoin enthusiasts squad.
“I am not a big believer in Bitcoin. I am a believer in Blockchain Technology” He said.
He added that he believes “there will be a global cryptocurrency at some point where the world understands it and it is not based on mining costs or cost of electricity or things like that”
Cohn and the global cryptocurrency prediction
Cohn started off as a security trader at Goldman Sachs in 1990, where he rose to prominence until he became COO and President of the investment Bank in 2006. He more recently joined the Trump administration as a National Economic Council Director in 2016, only to resign last March in response to the decision to tax commodities imports, a strategy he reportedly advised against.
During the same interview, he spoke of an ever-growing need for a global cryptocurrency that can rise up to the needs of a borderless and interconnected world. However, Bitcoin will not live up to the task according to Cohn, even though the cryptocurrency was the world’s first to make use of Blockchain.
Cohn explains that the incredibly power intensive mining process that helps securely settle payments and securely transfer value among peers, and the complexity of making these payments and setting up wallets, all make Bitcoin too complex of a cryptocurrency and unfriendly to the average user’s experience.
“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 can use it” he stated.
In fact, Bitcoin’s scalability issues came under the spotlight in December 2017, when the cryptocurrency reached its highest price of almost $20,000, due to an ever-expanding global adoption and a wave of inexperienced traders flooding the market. Mining fees spiked, while settlement times went to several hours due to enormous Network congestion, caused by the block size limit, and the limited transaction processing capabilities inherent to Bitcoin’s Blockchain.
Goldman Sachs Bitcoin future trading desk
Ever since the major market upswing of the last Quarter of 2017, it became clearer by the day that big institutional players were planning their entry to the cryptosphere.
From NASDAQ to CBOE, all the way to JP Morgan and Goldman Sachs, the old financial realm started showing strategic interests in those very digital assets that shook their realm through bold visions and claims of disrupting the whole market and even making financial institutions irrelevant at some point.
The big announcement of last month of Goldman Sachs hiring Justin Schmidt as Head of its Digital Asset Markets in its securities division was confirmed by Cohn.
“Look they can do whatever they want. They can do whatever is in their shareholders best interest” he commented.
In fact, this will make Goldman Sacks the very first major Wall Street bank to open a Bitcoin trading desk, succumbing to months of pressure from its clients, and may probably open the door wide-open to mainstream for Bitcoin, taking it off its digital world, to a more competitive financial market.