Goldman Sachs as a company has gone through a range of emotions when it comes to Bitcoin. They are now slowly coming around to it and as a consequence CEO Lloyd Blankfein can see it as a currency of the New World.
Blankfein admits that he has not yet invested in the controversial on Wall Street digital currency; however, he is not ready to turn on it or pooh-pooh it. Instead, Blankfein likes the idea of a currency backed by consensus.
Makes a lot of sense
Blankfein, while looking through the history of currencies, has made an interesting observation of what has been, what the currency situation is now, and why Bitcoin could work in the future - in a New World.
“I read a lot of history, and I know that once upon a time, a coin was worth $5 if it had $5 worth of gold in it,” Blankfein said in an interview with Bloomberg. “Now we have paper that is just backed by fiat...Maybe in the new world, something gets backed by consensus.”
Blankfein, maybe inadvertently, points out how the current situation of paper money does not make too much sense. Having paper money that is simply backed by fiat and governments and other rocky centralized authorities is not an ideal situation.
It makes sense then to have a currency that is backed purely by an agreement of its price - consensus. Bitcoin is in a unique position as its underlying technology and its position in the market makes it the perfect consensus-backed currency.
There is a New World revolution that is taking place across many sectors of society, and in the monetary ecosystem, Bitcoin is a disruptive force. Blockchain technology is spreading its influence, but Bitcoin is ravaging the established order of things.
‘People were skeptical of paper money’
Despite paper money being Blankfein and Goldman’s bread and butter, it seems that the CEO has a lot of reservations about it. He has said before, in a tweet that paper money was once viewed with equal suspicion.
The open-minded CEO may be taking a cautious approach to Bitcoin, but it is clear that he is looking for something new and revolutionary. Many are in a similar situation.
“I’ve learned over the years that there’s a lot of things that work out pretty well that I don’t love,” the CEO concluded.