Goldman Sachs CEO: Bitcoin has bubble features, yet might be the next form of money

In his recent interview to CNBC, the current chief executive of Goldman Sachs has provided a detailed description of his personal views on Bitcoin. Quite naturally, he does not consider Bitcoin his safe haven and implies it has some properties of a bubble. The media previously reported that Goldman Sachs might open a Bitcoin trading desk, and when asked about this, Mr. Blankfein simply stated “it hasn’t crossed my desk to set up a Bitcoin trading desk”.

As it has quickly became obvious, just because the CEO of Goldman Sachs told Bitcoin has some bubble features does not mean he thinks it’s not worth trying out. “There are a lot of things that work really, really well today, and I thought they were stupid and wrong.” One of such things were cellphones, as Blankfein tells, he thought nobody would be carrying around a piece of machinery while there are coin-operated telephone booths every five steps.

Once, reminds the leader of Goldman Sachs, money were based on the price of gold they were issued in, then it went to paper money backed by gold in Treasury, and then it came to fiat currencies, when paper money are worth something because the market agrees on this. And when gold stopped backing paper currencies, many people didn’t trust this new mechanism just like many don’t trust Bitcoin today, Lloyd Blankfein compares. “But if it works, maybe it’s a natural progression? From hard money to fiat money to consensus money!”

This carefulness is what many conservative entrepreneurs lack when it comes to Bitcoin. Progressive speakers, on the other hands, say things which seem too optimistic to be true. As seen from the interview, the CEO of Goldman Sachs neither supports nor rejects the idea, but instead clearly offers to wait how it works out before categorically stating anything.