Ex Goldman Sachs President Gary Cohn is Bearish about Crypto

Cryptocurrency markets were in the red over the last two days, now today, the majority of coins are making small sideways movements. Bitcoin price lost all the gains that it generated during its weekend rally. Bearish calls from top rated market analysts created a broader selloff in cryptocurrency markets.

Following Warren Buffett and Bill Gates, former Goldman Sachs President Gary Cohn said yesterday that he is not a big believer in Bitcoin’s potential to become a global cryptocurrency.

Gary Cohn Show Concerns on Bitcoin

Although he likes the idea of blockchain technology that allows people to send money from one place to other without the need for the third party, the economic expert raised questions on the formation of bitcoin and other digital currencies:

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I do think we will have a global cryptocurrency at some point where the world understands it, and it’s not based on mining costs or cost of electricity or things like that,” Gary Cohn said.

Bitcoin and other cryptocurrencies are mined through specialized computer hardware, and they aren’t backed by any asset making it difficult for traders to understand its movement on cryptocurrency exchanges.

He expects the global digital coin will be similar to bitcoin, but it will be easier to understand.

He added, “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.”

Warren Buffett and Bill Gates Raised Similar Concerns

Though Warren Buffett and Bill Gates didn’t highlight the idea of the global digital coin, they have also raised similar concerns on bitcoin and the cryptocurrency markets. They also questioned cryptocurrencies underlying value and don’t believe that these coins can be considered assets. That’s three major business magnates who all believe the same thing; that cryptocurrencies are only moving on speculation, and traders are buying them purely on a hope that the new buyer will pay more. What do you think?

Featured Image: twitter

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