Bitcoin Forum

Gray Cohn, former president of Goldman Sachs and also former chief economic advisor to US President Donald Trump. Cohn believes that world will have global cryptocurrency in future but it will not be a Bitcoin. Cohn told on CNBC on May 8th Squawk interview.

The future will have simpler global cryptocurrency

In an interview with Squawk on the Street, the former president of Goldman Sachs, Gray Cohn said,

“I'm not a big believer in bitcoin. I am a believer in blockchain technology. 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”.

Even after a rapid growth in bitcoin there are several issues like it price volatility, high transaction volumes. Accordingly, the Cohn’s believes that global cryptocurrency in the future will be simplest and easier to understand compared to Bitcoin.

He said,

“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”.

Furthermore, he thinks that the global cryptocurrency in the future will not be on mining costs or electricity cost. However, Bitcoin mining is completely depending on miner’s system to solves hashes in return to get rewards via PoW protocol. In last October, bitcoin mining required 56 million kilowatt-hours of electricity per day at an expense of $6.7 million.

On the note, Cohn was asked about the Goldman Sachs recent reports like it is offering Bitcoin contracts and aiming to open a trading desk. He replied, Goldman Sachs must consider only the best interests of their shareholders. Later on, he also mentioned saying that he owns no share in Goldman Sachs.

Additionally, he said about his March departure from the Trump administration, that he was considering running a regulated bank, but in digitized world.

“I do have an idea for a company. It would be an interesting concept playing on the knowledge I know from the banking world”.
Simultaneously, bitcoin price is floating towards the mark of $10,000, still many believes and hopes that bitcoin will hit the heights.

Also Read here: Goldman Sachs Predicts a Global Cryptocurrency Other Than Bitcoin (https://coinpedia.org/news/former-president-predicts-global-cryptocurrency/)


Do you think there will be other global cryptocurrency in the future? Let us know in Twitter (https://twitter.com/Coinpediamarket) and Telegram (https://t.me/Coinpedia).

Historically speaking there is allot of evidence supporting this theory but my thing is BTC was the first digital scarce asset, it also grown organically without a 3rd party so its not a security so I can see how or why there would be a mass exodus to a competing project, a project that could be clamped down on the the securities exchange commission

I think that much like fiat currencies, there will be multiple global cryptocurrencies that will enjoy mass adoption.

The difference is that these currencies will not be bound by imaginary borders within specific countries like fiat currencies.

Ex Goldman Sachs statement is not proper I guess because without bitcoin we can’t think about crypto currency in future so bitcoin is the most popular and strong position in market. Many of the people are investing their money in her because of the price and facilities. So I don’t think without bitcoin there is any future of crypto market.

We are on the same page in connection with this, I also think that a lot of country will start to develop a national crypto. Just have a look at Sweeden, they have already announced this. It will be easier for them, because they are already a real cashless country, so this will be a minor change for them.
What I cannot really understand yet is that what will will be the difference between the digital fiat and the national crypto, if the central bank will be the one who can issue them, but time will tell... maybe only the system behind the two different digital money, or they will just replace the digital fiat system with the national crypto...

This theory seems kind of interesting and more helpful for the investors. It's good to see Cryptocurrency being accepted by many influential people. But Bitcoin has sustained all this way in the market. Though recently it went through some downside, but I guess Bitcoin will rise again and prove its worth.

Yes, there can be a global cryptocurrency and this is the need of the age. There should be a decentralized digital currency. But Goldman said ther will be a cryptocurrency but that will not be bitcoin. Bitcoin is the oldest crypto and I think this should be that global currency but Goldman said the reverse in the article. Lets look forward to future anything is possible in crypto.

although some of the world's top executives do not really believe in bitcoin investments, but they all believe in the blockchain technology that's on bitcoin and maybe it will be applied in the future. I've also heard that local banks in my country will use blockchain as their technology.

I do not think that in the near future there will be some kind of crypto currency, which will be able to beat bitcoin in popularity and become generally accepted throughout the world. Yes, when such a coin appears exactly, it is easy to predict, but I think this will not happen for another 20 years.

It is also similar with crypto currency. There are multiple crypto currency available in the world. But this currencies are not legal all the countries.

The only way to create a "simpler" global cryptocurrency is to sacrifice all the favourable qualities that make Bitcoin useful.  Bitcoin isn't complicated for the sake of it.  It's complicated because it solves the Byzantine Generals' Problem, because it's neutral and self-governing, because it works without any one person or company in control.  I've always been fond of this particular quote to summarise what that means:


If you want to make it simple, it means you're willing to discard all of that and more.  You can't cut corners and expect the result to be of equal quality and value.  But then I wouldn't expect any of Trump's advisors to be intelligent enough to realise this.  Just because Cohn can't understand how Bitcoin works, it doesn't mean people aren't going to use Bitcoin.  Few people in the world truly understand the inner workings of automated clearing houses (https://bitcointalk.org/index.php?topic=3266033), for example, but it doesn't prevent the average person from utilising those on a daily basis, likely blissfully unaware of their existence.

Peoples' ignorance does not detract from the beauty of Bitcoin.  It just means they'll be late to the party while they're wasting their time trying to come up with something simpler (but worse).

Yes I believe so. There will be a common cryptocurrency that will be widely accepted and used as common medium of transaction. I hope then it will be more popular on the world.

As much as we do not want bitcoin to be a single global crypto currency, this will not happen, because bitcoin can not eliminate its high volatility. The global crypto-alaith can only be an adjustable centralized crypto currency, which will not have high volatility. It is the stable crypto-ala price that can be used in interstate settlements.
 Citizens, of course, can use any crypto currency, so they will later use different crypto currency with good functionality.

Volatility is only present because of how immature this market is, and that eventually will change. It's impossible to obtain a total form of stability, but nothing in the world is completely stable -- fiat currencies can jump up and down significantly in value against each other as well, so there is no real difference technically. People blatantly assume that just because Bitcoin's price is volatile right now it will stay like that for ever, but that's not the case. Bitcoin currently still is somewhat of a niche in different ways, but that niche layer will make place for a more professional ruled market. The less short term minded individuals this market counts, the better it will be for the market in the long run.

Yet another "expert" who even don't know how bitcoin works at all. He don't even why Bitcoin use PoW as it's protocol consensus & difference between required mining electricity and electricity used to mine.
Furthermore, Bitcoin (and most cryptocurrency without complex feature) can be understood and used easier just by make a wallet with good UI/UX and open-source ::)

Let me guess, "Sach's bucks" are the crypto of the future.  ::)

At some point I do think that bitcoin lacks on some aspects, first of all its feature of being anonymous, how cam you expect that the global cryptocurrency would be allowed go this if it ever become the global crypto, and I akso think that because of this people can secretly make. illegal transactions but I do hope that devs can change their features and make btc more promising.

i think he has some valid points such as needing to address volatility, burning electricity, simplicity and ease of use.

but these are all things that bitcoin itself is likely, and incentivized, to solve for itself given enough time. by the time goldman coin is out bitcoin will have a decade or two of history, much wider adoption, most flaws dealt with and will have worked almost perfectly 24/7 since inception. that's quite some catching up to do.

You've heard of these things called banknotes, right?  Is your name attached to each transaction you make with those?  Is something preventing people from secretly making illegal transactions with a stack of cash?  How would that ever be allowed to become a global norm?  I assure you, the world already knows how to cope with anonymous money.  We've had it for some time.

However, Bitcoin isn't anonymous.  Bitcoin is pseudonymous, tied to addresses and recorded publicly for all to see.  Considerably less anonymous than cash is.  



Bingo.  Anyone who doesn't understand it naturally assumes it'll be easy to make something "better".  But the fact is, they always have a poor notion of what "better" actually looks like.  No doubt they'll make a walled-garden-currency, try to pass it off as a cryptocurrency with some flashy marketing and some benighted fools might think that's great for a while, but eventually it'll go wrong because all centralised systems are prone to corruption.  I'm looking forward to the spectacle.  All the while, real crypto will be getting stronger.  

We know they're wasting their time, they just haven't caught on yet.

this responds because he said all these things and I do not understand why the hell these news channels still care about negative opinions of these guys who just want to appear on the news channels


hahahaha

he hates bitcoin so I do not doubt that hatred will make him commit the madness of creating his own altcoin, it would be something like Bitcoin Sashs ( Bsahs)


https://i.pinimg.com/736x/89/d8/7a/89d87a41b5aa74a8b8926dff20f81dcd--caged-nicolas-cage.jpg

There is nothing difficult in using Bitcoin, especially if you use a proper wallet. People don't need to understand how mining works. Is he trying to say that we will have something similar to Ripple as a global currency? That wouldn't be so interesting. Some governments may try to aim for cryptocurrencies which are partialy centralised. Bitcoin does not allow them to block certain transactions and wallets so it shouldn't surprise anyone that they are against it. PoW might be not a good solution. There are many other protocols which could be used

Finally they admit that some cryptocurrency will be traded globally in the future and it is a contrast on what they said earlier about the entire market, if they can come out and claim that bitcoin wont be the globally traded currency in the future, which decentralized coins have that ability, they can just close their eyes and say anything but the world will move on.

The solution for a simpler global cryptocurrency is available with bitcoin, they need some great front end development and wallets that can be used by anyone and it will happen in the near future, even now we have mobile wallets which is easy to use and transact the coins without much fuss and i am sure in the future we will have some integration with mobile phones where you could send money to your contacts with the help of an app which could link every contacts to the wallet.

He has the wrong idea about things as the price of bitcoin is not based on mining cost or cost of electricity, it is simply supply and demand.

Of course it won't be Bitcoin, according to Goldman Sachs, it would have to be a Goldman Sachs created cryptocurrency. They'll keep denying and it'll just bring great free press and push people to the strongest competitor against the big banks.

Any believer in Bitcoin, any hodler, knows that the big banks can redeem themselves through simply adopting blockchain to find a way to make more money.

Saying "I believe in blockchain, but Bitcoin isn't going to survive" is the most cliche response from corporations and governments. They can't accept the great idea, unless it comes from their own brain trust.

Technically we are in such a situation. Bitcoin and every other crypto is global. Anyone can use it. It is not bound by imaginary borders. There is mass adoption of bitcoin and the other cryptos. So what is this discussion all about?

The good news, cryptocurrency is being accepted. It's just that "they" want to make a competitor for bitcoin they can control, maybe to get a lot of benefits. I do not know, a decent decentralized system would definitely be the top choice. We need change.

this is the necessity of the times. There should be a decentralized digital currency. But Goldman says there will be cryptocurrency but it will not be a bitcoin. Bitcoin is the oldest crypto and I think it should be a global currency but Goldman says otherwise in the article.

Bitcoin is the first of its kind and that it has been field tested for almost a decade, proving its usability and performance capabilities in the process, is just inappropriate.

Of course, it has run into a lot of issues along the way. Bitcoin mining truly is very energy-intensive, it has problems with handling high volumes of transactions and it has become slower as such. It’s also true that there are currently existing alternatives which perform better in certain aspects.

But I still don't support EX Goldman Sachs's views.

A lot of the replies focus on him being a former Goldman Sachs employee, but I think what is important is that he was a advisor to Donald Trump. So he might paved the way for a GovCoin and that is why he is saying that Bitcoin will not be the global crypto currency.

I think in his advisory capacity to the president, he might have focussed on introducing a new coin to supplement the US Dollar.

In His speech He stated that he does not like bitcoin that much so he will say anything to discredit bitcoin. Even in the future we have a more popular and globally accepted coin than bitcoin I will still acknowledge bitcoin and satoshi nakamoto as the greatest. There is still room for improvement for anyone.

Of course, no one agrees that the entire economy of the world should be concentrated on a single cryptocurrency, as this would imply a paradoxical centralization that would converge many interests around the bitcoin that could jeopardize its viability, in addition to the fact that the btc does not seem to have the enough capacity to meet the great demands of the global economy.

Sounds like a person that knows zero about crypto currency

Bitcoin is already a value storage, so it may not be the payment means, but it will retain the role as a storage of value, which is equally important to playing with crypto.

Maybe, who knows? We need a much more simplified method wherein everybody can understand it or somehow really use it without further complications. Bitcoin is widely known and has become popular since it began all this stuff and technology. As of now, we see blockchain technology improving and maturing while targeting different industries it can reach for innovation and efficiency. Soon enough, this tech will be at much more higher position which will receive the well deserved respect from every community. Further, they should look at the security side of the users while adopting this tech for a faster adoption.

It's his opinion and it may or may not be true. We can only wait to see what actually happens in the future. Even if BTC won't be accepted as a global cryptocurrency then according to him some cryptocurrency will surely be accepted globally. This is a good news because any cryptocurrency if accepted globally will definitely boost the sales of BTC in the market as it will be traded with the BTC pair too. So in an indirect BTC will be benefited whatever the case is.  ;)

Well everyone has their right to express what thy think is true but this is just a showing of respect,i am not one of those believers,because for me only bitcoin fits everything in regards future currency and technology

That former president literally said that he is now a believer of bitcoin so its given that he has a bias outview about matters here

I don't know, I will not think in the future of new digital currencies other than bitcoin.

I am part of a person who is late knowing the crypto world, I don't want to forget bitcoin.

I just want to make a good contribution to bitcoin, so that the value of bitcoin can survive and become a legal payment instrument.

I will not comment long, but I feel that everything I do today can bring the value of bitcoin to the global market.

When will you learn not to follow the banksters. Their mentality is crooked from the years of dealing with printed and devalued fiat money, fictional debt and futures.
All these things have no actual value and exist only because the bankers and governments need them to keep screwing with people's minds.
Most bankers will say that bitcoin is a bubble and a scam but if they block your account with your hard earned money it's not a scam, it's policy.

Hello,

It is easy to criticise BTC and it surely not perfect even his huges advantages. Perhaps another crypto will take the lead over BTC but I think it will be in many years if it will happen because we are still at the beginning of te markets, quite confused one with projects for everything, but things will evolute and a clearer picture will rise. then we will see if the first is the best or if another one manage to overpassed it.

Yes, their idea of a global Crypto currency is a currency that are centralized in every aspect of the coin from development to the hosting of the nodes to the decision making. They will also strip ALL anonymity from each address being used, because anonymity takes away the control and they need to be in control.

The R3 Group with the help of Mike Hearn are already working on the solution for their centrally controlled global crypto currency.   :(

Yes, so we might call it a fiat based cryptocurrency. LOL. There's nothing wrong with having a global crypto. The advantage of though of having it is in terms of international trade, specially cross-border payments and of course its adaptability. And maybe we can see businesses grow overtime and we as consumers will have more options to pay. But I'm sure that crypto's like Bitcoin will still thrive against this global cryptocurrency because majority will prefer decentralizes coins.

We all know that this idiot is completely wrong and that bitcoin will be the global currency. However, on the off chance that he is correct i bet it's price will be dependant on bitcoin so it's the same either way

He might be right because no one knows whats going to happen in the future ,bitcoin may never be the king forever as newer use of block chain technology is been release  every years but still I wonder what the next crypto king will introduce

The theory of global cryptocurrency is hardly feasible. I believe that the cryptocurrency will be more used by individuals than by government agencies or even business structures. The reason for this is the high volatility of the decentralized cryptocurrency. And in a world where there will be a large number of varieties of cryptocurrency, only one type of cryptocurrency is unlikely to find its advantage. It will be used simultaneously with a dozen different cryptocurrencies with a high level of popularity.
 In addition, we do not know which way the further development of cryptocurrency will go. It is also possible to merge with conventional currency, securities or even non-cash currency.

No, I do not believe that in the future a single cryptocurrency will dominate the world trade and finance because that would imply a type of centralization that is not convenient for anyone. However, I believe that in the long term only very few cryptocurrencies will be needed to cover the world's economic needs, just as currently only very few fiat currencies are needed to satisfy world trade (dollar, euro, yen, etc.). In addition, we must take into account that the tokenization of the economy is already underway, so countless tokens will be emerging in the coming years.

We can look at how Social Media has developed for clues as to what the future holds for crypto and Bitcoin. Myspace was huge for a while, and look at their user base now and look at their rival Facebook. At first Facebook was just for college students and then they expanded. Why did Facebook see so much growth? In my opinion, Myspace primed the public for mainstream usage. The features were nice and it just worked for people. It was a good "solution" at the right time.

So Bitcoin itself has made us all familiar with blockchain and cryptography in regards to monetary transactions, currencies, and the impact of the technology. I think it's safe to assume to there will be a second generation coin that will take the reigns. It will offer the right mainstream features, simplicity of use, versatility, and who knows what else. It will also come at the right time and people will just adopt it. It's going to happen like the two Bitcoin/crypto bull runs affected adoption thus far.

So yeah, Bitcoin will be around just how Myspace is still around, but it risks being watered down or just being left behind. It just doesn't offer enough features compared to new projects.

Those Proverbs. Okay for their descendants keep as a reflection of the culture of their ancestors. But follow them in life? Total unwillingness to take responsibility, removing it on "spirals", "returns", karma, God and so on? Well, everyone chooses their own path, this is obviously not mine.

These crypto currencies that are available in the market are really very potentiating one and no doubt they will end up being declared as a central currency world wide but now the question arises that out of many crypto currencies, which will be declared as a central one and according to many financial experts and even according to many wise investors, everyone is just suggesting the name of bitcoin, because of its potential and the growth it has made in the last past decade and the number of people investing into bitcoin are millions in number and then off course it is on the top of all the crypto ranking.

It's possible in the future there will be global crypto currency but not bitcoin, I think the more advanced crypto development in the world, there will be innovation about crypto where all benefits can exceed bitcoin now.

Their inability to handle it would be a reason for their refusal. The governments don't want to reduce their power and the economic freedom means full freedom, which the end of the administration of the rulers. Because Bitcoin and Blockcahin are now available, and everyone knows how to create a new one. So, Bitcoin doesn't have to be accepted.

The only basis for this kind of argument is because of the control which they cannot establish in the case of bitcoin and they will never accept it. The technology behind bitcoin is one that they will continue to appreciate till forever and that is what they will rely upon in bringing about the currency that they can control. Either way, it won't remove the place of bitcoin in history because that has been settled as one that disrupt the very way we know things are being done and challenge the overreaching ability of the powers that be in the world of finance.

My idea is that Bitcoin was created by CIA to make a step towards a global digital currency. All these guys giving all these kind of predictions are actually insiders who know what's gonna happen in future because there's a global plan they are aware of. 
The idea is a digital currency. How is it supposed to be presented to people? Of course as always like it happened to the internet. First, they present it as a good thing, freedom and all that stuff. And then it turns into a censored prison like it's happening now thanks to Google, Youtube, Facebook etc.
So here we have Bitcoin. Freedom, hooray! And then what? As Gray Cohn said, the digital world currency is supposed to be based on blockchain technology. Here is the role of developing Bitcoin. Attract people's attention to this technology to familiarize them with it. Next step is presenting a new world currency to people.
Let's see what's gonna happen next.

I wouldn't be surprised if there was a start-up news after these conversations. Everyone first criticizes Bitcoin and then seeks to uncover another coin. So everyone wants to make money.

I wouldn't be so sure of that, you're completely saying that all governments around the world are going to cave their economic power to bitcoin and allow it to be decentralized. That's not something I can see in the least, maybe I'm a pessimist, but I would think that governments fight a LITTLE harder than that.

They've had this power for so long, do you think they're going to give it up to us just like this? Come on.

Governments (and businesses) could completely ruin Bitcoin by buying a mass amount of mining equipment and running a 51 percent attack. They've thought about it, and I think that if they would ever need to -- they would.

Bitcoin was and will be the main cryptocurrency in the future. I heard a lot of statements about him that someone would dislodge him but he always remained in the first place. I think that nothing will change in the future

Thanks for sharing this, I believe we are all entitle to our own opinion and ideas. The globe or world getting a common cryptocurrency will not be quite possible. The issue with the legalization of cryptocurrency is one main factor which will affect the creation of a global cryptocurrency.

It could be happen global cryptocurrency but not bitcoin. Bitcoin is pioneer but i think its old technology and right now many cryptocurrency have more feature than bitcoin and more faster transaction confirmation.
I am prefer thinking that bitcoin is a store of value, like digital gold

And when that you think that it will happen that a universal crypto currency but not Bitcoin? For now, i see no one can supersede Satoshi's Bitcoin but if Goldman Sachs will create another Altcoin and they will pump it hard just to replace Bitcoin then maybe many years from now that it will become possible i guess.

the fact that it will be a cryptocurrency make it to be directly dependent on bitcoin. bitcoin is the first and truely decentralized crypto. If there will be a global cryptocurrency, I am very sure it will be heavily regulated and I do not think this is going to be easy except hes talking about a national currency because all countries have certain regulatory body that look into any issue related to monetary policy. and this is certainly why some countries today have ban while some are not against their usage

It isn't "old technology".  The last code commit was ~6 minutes ago, so it's more up to date than most of the crapcoins that have already fallen by the wayside, despite making bold claims about how they were the "next big thing".  Bitcoin is under a constant state of development and improvement.  No coin has a comparable workforce behind it that could match Bitcoin's development pace.

Most PoW cryptocurrencies are exactly the same technology, but just sacrifice security and decentralisation for speed.  That's not a "feature", it's a compromise.  Other methods like PoS and DAG have slightly different compromises.  Try not to fall for the marketing hype when people talk about coins that are supposedly more advanced.  It's mostly cosmetic gimmickry designed to lure in some impressionable future bagholders.

They can create whatever they want and they can hype it and pump it as much as they want unless they create something better than bitcoin it wont make a difference and they wont do it because they know that bitcoin is based on solid economic principles, fiat currency always goes back to zero, governments are too easily tempted to think that this time is going to be different and they can somehow deceive the people forever and violate basic economic principles.

Satoshi did a very good job at programing something like bitcoin but one of the key components was to make it scarce and with a hard limit of how many coins there can be, something that fiat does not have and it will be the main reason of its demise.

Obviously Gray Cohn is an idiot. There already is a global system in place for transferring currency, it’s called ach/eft. Blockchain technology is nothing more than a distributed database. If there is anything that blockchain tech can improve globally it’s the ach/eft system. This will simply improve the current financial establishment worldwide.

Another way to say this is:

"Man who did not see train coming predicts arrival of better train."  :D

Thanks for sharing interesting post. I like crypto and I am interested in everything that refers to crypto. To my mind, it is better to invest in btc now because i think that it will be the leader of the market for long long time or even replace the main currency

I will never believe on those greedy bankers because everything they touched turn out to be a disaster. Big example is what's happening in fiat currency and banking industry. They are also the reason why Bitcoin is invented.