Lloyd Blankfein, the former CEO of Goldman Sachs, believes that the environment surrounding cryptocurrencies has transformed in the last year. As a result, despite the recent price drop, he expressed optimism that the digital asset business is “happening.”
The American banker who was the CEO of Goldman Sachs until 2018 was not always kind to the cryptoverse. He questioned bitcoin’s ability to be a store of value at the start of 2021 due to its tremendous volatility. He also mentioned private keys, saying they are perplexing since people can easily misplace them.
Blankfein, on the other hand, seemed more upbeat in his most recent interview with CNBC. He stated that 2021 was a very successful year, with bitcoin and altcoins attracting trillions of money. Despite the fact that most digital assets have been in the red for the previous few days, the 67-year-old American believes that “crypto is happening:”
“Look, my view of it is evolving. I can’t predict the future, but I think it’s a big thing to be able to predict the present, like, ‘What is happening?’ And I look at the crypto, and it is happening.”
When asked about the current price drop, Blankfein stated that it is not a major issue because there is already a significant amount of capital invested in the asset class. He also stated that bitcoin and altcoins have advantages for the financial network, including as “instantaneous transfer and credit risk reduction.”
“And guess what? I would certainly want to have an oar in that water,” Blankfein concluded, hinting he might hop on the cryptocurrency bandwagon.
Despite Blankfein’s belief that “crypto is happening,” the current market position is pretty dire. Most digital assets have been declining since the beginning of the year. Things are also looking bleak for bitcoin. The most valuable cryptocurrency in terms of market capitalization ended the year with a price tag of roughly $47,000.
Many regard the asset as a hedge against inflation and even digital gold, but it fell further at the start of 2021 after the Federal Reserve disclosed efforts to combat monetary turbulence in the United States.
On that point, Mark Cuban, owner of the Dallas Mavericks and a supporter of the crypto realm, stated that Bitcoin is not and will never be an inflation hedge.
Bitcoin fell more in the following weeks, and at the time of writing, it is trading about $34,000.