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Goldman Sachs’ Lloyd Blankfein feels he can explain cryptocurrency revolution in hindsight

Priyamvada Singh

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Goldman Sachs' Lloyd Blankfein feels he can explain cryptocurrency revolution in hindsight
Source: Pixabay

In a recent interview with Bloomberg, the CEO of Goldman Sachs, Lloyd Blankfein shared his views on the future of crypto-economy. The veteran economist began with discussing the severity of threats posed at the system by cryptocurrencies. According to him, cryptocurrencies are not a ‘systematic issue’ currently.

Blankfein cited the inception of cell phones as an example to make a point that it is hard to predict what an invention is worth until it has been introduced as a utility. He added that any forecast regarding the future success of cryptocurrencies is only possible through postulation or hindsight, and further connected it with evolution, saying:

“You start out with gold as money, and people only take hard currency and you make gold coins. A gold coin is worth five dollars. You had five dollars in gold and eventually they would give you a piece of paper with a promise that there was five dollars in gold to back the five-dollar piece of paper and you could redeem it. Then they gave you a piece of paper and said there’s five dollars of gold but you can’t redeem it.”

He continued the dialogue with a sarcastic statement indicating the recent scenarios of our economic system:

“And at some point they give you a piece of paper and say it’s worth worth five dollars, you can’t redeem it, you don’t have it. We don’t have it even if you wanted it. And we’re still doing it today”

In Blankfein’s opinion, if we as a society could go through this “morphing” from gold coins to fiat currency where the center makes the most important decisions, then we cannot entirely erase the possibility of a consensus currency. He wisely closed the discussion, saying:

“I’m not in this school of saying – because it’s uncomfortable with me, because it’s unfamiliar, this can’t happen. That’s so arrogant.”





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Priyamvada is a full-time journalist at AMBCrypto. A graduate in Journalism & Communication from Manipal University, she believes blockchain technology to be a revolutionary tool in advancing the future. Currently, she holds no value in cryptocurrencies.

Bitcoin

Bitcoin’s on-chain/off-chain valuation indicators the key point of focus as coin heads to $13,000

Akash Anand

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Bitcoin's on-chain/off-chain valuation indicators they key point of focus as crypto heads towards $13,000
Source: Pixabay

With the rise in Bitcoin’s price, the rest of the cryptocurrency market has followed suit by displaying a green trend across the board. In a recent series of tweets by popular cryptocurrency analyst Adam Tache, users were informed about the top Bitcoin on-chain and off-chain valuation indicators, derived from on-chain valuation models.

The analysis touched on the Mayer Multiple created by dividing the price by the all-important – 200 day moving average. The current average Mayer Multiple stands at a figure of 1.39, which may climb higher. Looking at previous figures, the normal Mayer Multiple figures stated that if the value shoots up to 2.4, then Bitcoin eventually retraces back to a comfortable 1.5. The Mayer Multiple is usually considered as the original indicator used to clock the valuation of Bitcoin.

Another major indicator discussed in the thread was the NVT Ratio invented by Willy Woo, Partner at Adaptive Fund. The indicator is used to calculate Bitcoin’s prominence or value in the cryptocurrency space by evaluating the amount transacted on the blockchain as a “proxy for investment flow and bear and bull market cycles.”

At the moment, the NVT ratio for Bitcoin is in an abnormal region compared to the start of previous bullish patterns. The NVT ratio was above the “bear market” separator, which meant that the cryptocurrency was overbought. When Bitcoin is overbought, it usually means that the buying pressure is much higher than the selling pressure. Adam Tache opined,

“NVT signaling overbought is likely due to a number of factors — namely the proliferation of exchange-based, purely off-chain txs driving short-term price action.”

The analysis also pointed out the liveliness of the Bitcoin indicator created by Tamas Blummer. The indicator showed the inverse count of lost or ‘HODLed’ Bitcoin, while stating that when the ratio increases, long-terms holders of the cryptocurrency decrease their positions. The indicator conveyed accumulation of Bitcoin when the ratio decreased.





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