A senior Goldman Sachs chairman has asked why crypto doesn’t have a momentum despite “the inflating U.S. dollar” and governments are proving that they can and will freeze accounts under certain circumstances. “Not seeing it in the price, so far,” he said.
Goldman Sachs Blankfein Has Crypto Question
Lloyd Blankfein, who is currently senior chairman of the Goldman Sachs Group, tweeted about crypto Sunday. Blankfein previously served as President and Chief Executive Officer of Goldman Sachs from 2006 to September 2018.
He explained that he keeps an open mind about crypto. However, he questioned why it did not “have a moment” considering “the inflating US dollar” and governments showing that they “can and will in certain circumstances freeze accounts and block payments.” He thought, “Not seeing it in the price, so far …”
Recently, the Canadian government froze accounts linked to the Freedom Convoy truck driver protest. In addition, since Russia began its invasion of Ukraine, a growing number of governments have imposed sanctions on some Russian individuals and entities, which may include freezing accounts linked to them.
While bank accounts and cryptocurrencies held at exchanges can be frozen, decentralized cryptocurrencies, such as bitcoin and ether, cannot be frozen directly within the network. Coinbase and Kraken CEOs have advised that anyone who cares about freezing their crypto assets should transfer them from exchanges and self-guard them. U.S. Senator Ted Cruz described: “One of the reasons I’m so optimistic about bitcoin is because it’s decentralized and out of control.”
When it comes to inflation, many people view bitcoin as a hedge against rising inflation, including famed hedge fund manager Paul Tudor Jones, who said in October last year that he prefers bitcoin to gold as an inflation hedge. Blankfein’s investment bank, Goldman Sachs, said in December 2020 that bitcoin is “the retail inflation hedge”.
Many People Answer Blankfein’s Cryptic Question
The senior president of Goldman Sachs has received many responses on Twitter. Some people agreed with him that the price of bitcoin should have risen much more while others argued that BTC has already risen sharply, especially compared to other assets.
“Interesting observation and I kind of agree,” wrote one Twitter user. “Although, the only thing having a moment now is oil, energy and wheat.”
Crypt analyst Tuur Demeester wrote:
Bitcoin is up 10,000% in 72 months, with a combined annual return of 116%. Please give it a minute.
Another Twitter user told Blankfein: “Oh, it’s definitely in the price, Lloyd. Malzomi! Now imagine when you, Ken Griffin, DHH [Ruby on Rail creator David Heinemeier Hansson], and the rest of the new 2022 converters are starting to buy in size. This adoption wave will be bigger than when Druck [Stan Druckenmiller] and PTJ [Paul Tudor Jones] started buying in 2020. “
Chris Burniske, a partner at VC firm Placeholder, commented: “Don’t paper it, Lloyd.”
Some people are more skeptical about cryptocurrency. One tweeted: “Crypto is being destroyed, by restrictive government regulation, because BTC and other cryptocurrencies are used by Russian oligarchs as a vehicle for mass money laundering and avoidance of sanctions. That’s the “moment” we’re likely to see. “
Digital activity manager Eric Weiss responded:
It’s just about education. So few people understand the value proposition of bitcoin. You clearly do. Just enjoy with us Lloyd. We will do it.
What do you think of the senior president of Goldman Sachs asking about crypto? Let us know in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or support of any products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is liable, directly or indirectly, for any damage or loss caused or allegedly caused by or in connection with the use or reliance on any content, goods or services mentioned in this article.