[2017-11-30] Bitcoin is a vehicle for fraudsters, warns Goldman Sachs boss

[jekjekman]

The boss of Goldman Sachs became the latest high-profile critic of bitcoin, claiming it is a vehicle to commit fraud as the value of the cryptocurrency plunged 20% in less than 24 hours.

Lloyd Blankfein, chief executive of the US investment bank, said: “Something that moves 20% [overnight] does not feel like a currency. It is a vehicle to perpetrate fraud.”

His comments came during another wildly volatile trading session for the digital currency, which plunged by over $2,000 in a 24-hour period. Having topped $11,000 to a reach new record high of $11,395 on Wednesday, it fell to a low of $9,000 on Thursday, before picking up slightly later in the day.

Blankfein said Goldman did not need to have a bitcoin strategy, adding the digital currency would need to be a lot less volatile and a lot more liquid to justify closer attention.

“When do I have to have a bitcoin strategy? Not today. Life must be really rosy if that is what we are talking about,” he said. “Bitcoin is not for me. A lot of things that have not been for me in the past 20 years have worked out, but I am not guessing that this will work out.”


READ MORE


These people are really against bitcoin, and are only giving negative feedbacks about it everytime. I wonder how many bitcoin do they really own.,

[Slow death]

Lloyd Blankfein, chief executive of the US investment bank, said: “Something that moves 20% [overnight] does not feel like a currency. It is a vehicle to perpetrate fraud.”

In law, fraud is deliberate deception to secure unfair or unlawful gain, or to deprive a victim of a legal right. Fraud itself can be a civil wrong (i.e., a fraud victim may sue the fraud perpetrator to avoid the fraud or recover monetary compensation), a criminal wrong (i.e., a fraud perpetrator may be prosecuted and imprisoned by governmental authorities) or it may cause no loss of money, property or legal right but still be an element of another civil or criminal wrong. The purpose of fraud may be monetary gain or other benefits, such as obtaining a passport or travel document, driver's license or qualifying for a mortgage by way of false statements.

https://en.wikipedia.org/wiki/Fraud

gold, oil, diamond, physical money, are used for fraud, stand accusing bitcoin is exaggerated on his part

His comments came during another wildly volatile trading session for the digital currency, which plunged by over $2,000 in a 24-hour period. Having topped $11,000 to a reach new record high of $11,395 on Wednesday, it fell to a low of $9,000 on Thursday, before picking up slightly later in the day.

he should be worried that in the future people would prefer to use bitcoin instead of using a bank

[Iranus]

I can see how it can be used for pump and dump schemes and other shady or illegal antics which are banned more thoroughly in regular markets.  He would certainly be reasonable to suggest that.

However, I don't think that is an inherent feature of BTC, nor will it necessarily last forever.  He should ideally be presenting reasonable solutions when he's in such a significant position of influence.

I suppose it's still important to distinguish between this and BTC just being a fraud, which is simply false information.  He took his time, and it's least not 100% wrong.

[iamTom123]

"A lot of things that have not been for me in the past 20 years have worked out, but I am not guessing that this will work out.”

At least, the man is quite honest in admitting that he is not perfect in his prediction, estimate and projection. Actually, he can just be wary about the high volatility of Bitcoin and he is lazy enough to research if he can be able to make some money out of it. Anyway, the whole Bitcoin, am sure, does not need Lloyd Blankfein today or anytime in the future. the US Dollar and any other fiat money we have all over the world have also been used in fraud and criminal activities, should you then not continue using them?

We don't need people like him and Jamie Dimon because these are the people (and their industry) which Bitcoin will about to disrupt big time. And lastly, please sir, just leave us alone. I am hoping that the man and the firm he is representing will not reverse course once they realized that Bitcoin is really here to stay and that money can be made here. I am sure his firm is just waiting for the right time to get in with the Bitcoin bandwagon because they realize that there is really a big demand from their clients.