Ex-Goldman Sachs CEO Remain Bullish on Crypto Even as Prices Tumble
Appearing in an interview with CNBC, Lloyd Blankfein said that even though most of the cryptocurrencies have been in the red zone over the past couple of days, he still believes they are 'happening.'
“Look, my view of it is evolving. I can’t predict the future, but I think it’s a big thing to be able to predict the present, like, ‘What is happening?’ And I look at the crypto, and it is happening,” Blankfein said in his interview.
By 'happening,' Blankfein explained that the ecosystem around cryptocurrencies has evolved over the past year. Even traditional financial companies including Goldman have begun offering clients ways to buy, trade, and custody digital currencies. Last month, the bank even explored ways to use bitcoin (BTC-USD) as collateral for cash loans to institutions without the physical exposure of the coin.
“It’s lost a lot of value, but at a point where it’s trillions of dollars of value contributing to it and whole ecosystems are growing around it. Of course, we have the benefits of instantaneous transfer and reduction of credit risk and all the benefits of blockchain.”
A former skeptic on crypto, Blankfein had earlier criticized bitcoin as a store of value, going even to say that regulators should be 'hyperventilating' over its rise.
He still remains skeptical but that doesn’t mean that "he cannot be pragmatic about it", he added.
Earlier today, Bitcoin’s price dipped to $32,950, its lowest level since July 23, 2021. The flagship cryptocurrency has lost over 45 percent since the beginning of December 2021 and more than 50 percent from its record high of $69,000 last seen in November 2021.
Speaking on the current price dip, Blankfein said that is not much of a concern since there is a considerable amount of capital invested in the asset class already.