fbpx
Money

The World Will Have A Global Cryptocurrency, But It Won’t Be Bitcoin

Former Goldman Sachs President Gary Cohn said Tuesday he thinks the world will have a global cryptocurrency that is not bitcoin.

“I’m not a big believer in bitcoin. I am a believer in blockchain technology,” Cohn told CNBC’s Bob Pisani in a “Squawk on the Street” interview.

“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,” he said. Cohn resigned in early March from his role as chief economic advisor to the Trump administration.

Bitcoin is created through an energy-intensive “mining” process that has come to require specialized computer hardware. The cryptocurrency is also the first application of blockchain technology, which eliminates the need for a third-party intermediary by rapidly creating a secure, permanent record of transactions between two parties.

The technology allows bitcoin users to send funds across borders quickly at a low cost. However, bitcoin has run into challenges such as handling high transaction volume.

Cohn expects the digital coin of the future will be simpler than bitcoin.

“It will be a more easily understood cryptocurrency,” 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.”

A surge of interest in bitcoin, and expectations for large-scale institutional investment, helped drive prices up more than 13 times last year. Bitcoin traded near $9,100 Tuesday morning.

Cohn’s former employer, Goldman Sachs, is one of a few Wall Street firms making a deliberate foray into cryptocurrencies. Last month, the investment bank hired former trader Justin Schmidt to be the first head of digital asset markets in Goldman’s securities division.

This story originally appeared on CNBC. Image courtesy of Andrew Harrer/Bloomberg/Getty Images.

Join The Discussion

New Zealand Begins Funerals For Mosque Shooting Victims
New Zealand Begins Funerals For Mosque Shooting Victims [Video]
Over 1,000 Feared Dead After Cyclone Idai Hits Mozambique
Over 1,000 Feared Dead After Cyclone Idai Hits Mozambique [Video]
Flash Floods, Earthquake In Indonesia Kill Dozens
Flash Floods, Earthquake In Indonesia Kill Dozens [Video]
Thais Flock To Early Voting In First Election Since 2014 Coup
Thais Flock To Early Voting In First Election Since 2014 Coup [Video]
Paris Blockchain Week Summit
Paris Blockchain Week Summit [Podcast]
Where The Funds Go On Crypto Exchanges And OTC Desks
Where The Funds Go On Crypto Exchanges And OTC Desks
Why Most Educated People Fail To Understand Bitcoin
Why Most Educated People Fail To Understand Bitcoin
Japanese Hacker Arrested For Stealing Over $130,000 In Cryptocurrency
Japanese Hacker Arrested For Stealing Over $130,000 In Cryptocurrency
Social Media Platforms Going Dark Should Be A Wake Up Call
Social Media Platforms Going Dark Should Be A Wake Up Call
Why You Shouldn't Put All Your Focus On Only One Social Media Network
Why You Shouldn’t Put All Your Focus On Only One Social Media Network
The Videos Your Customers Want To See On Social Media
The Videos Your Customers Want To See On Social Media? [Infographic]
5 Ways To “Trick” The Facebook Algorithm For More Engagement
5 Ways To “Trick” The Facebook Algorithm For More Engagement
Which Social Media Platform Should Your Business Use In 2019
Which Social Media Platform Should Your Business Use In 2019? [Infographic]
Snapchat To Launch Gaming Platform Next Month
Snapchat To Launch Gaming Platform Next Month
How Long Should A YouTube Video Be
How Long Should A YouTube Video Be? [Video]
YouTube Introduces One-Time Warning, New Strike Penalties
YouTube Introduces One-Time Warning, New Strike Penalties [Video]
6 Hottest Cannabis Products In 2019
6 Hottest Cannabis Products In 2019
10 Easy Ways To Be Healthier In 2019
10 Easy Ways To Be Healthier In 2019
9 Questions To Ask Your Network To Help You Find Your Path
9 Questions To Ask Your Network To Help You Find Your Path
What Is Your Therapist Listening For
What Is Your Therapist Listening For?
New Zealand Begins Funerals For Mosque Shooting Victims
New Zealand Begins Funerals For Mosque Shooting Victims [Video]
Apple Announces New iPad Air And iPad Mini
Apple Announces New iPad Air And iPad Mini [Video]
Over 1,000 Feared Dead After Cyclone Idai Hits Mozambique
Over 1,000 Feared Dead After Cyclone Idai Hits Mozambique [Video]
Flash Floods, Earthquake In Indonesia Kill Dozens
Flash Floods, Earthquake In Indonesia Kill Dozens [Video]