Former Goldman Sachs executive and ex advisor to US president, Gary Cohn said that a global Cryptocurrency is coming, but it is not Bitcoin. He said that he does not believe big in Bitcoin but believes in blockchain technology. He highlighted that technological complications means bitcoin is limited but the powering technology could become immensely significant.
Gary Cohn resigned as the former chief economic advisor in Trump’s administration a couple of months back. According to him blockchain technology is more interesting than the actual virtual currency.
Bitcoin And Blockchain Technology
The power of blockchain technology was first utilised as an online ledger with permanent record of all transactions of cryptocurrency by Bitcoin which is the first cryptocurrency in the world. With the growing bitcoin adoption, flaws associated with its technology came to the surface. The major flaws were the time taken for recording the transactions and cost occurred.
Generation and mining of new units of bitcoin requires much of the energy and is an intensive process requiring specific computer hardware. The issues related to bitcoin led the development of more than 1,500 cryptocurrencies since 2009 with new changes of blockchain.
The energy required to generate, or ‘mine’, new units of bitcoin is also incredibly intensive and requires specialist computer hardware. More than 1,500 cryptocurrencies have been developed since bitcoin’s inception in 2009, each attempting to overcome these issues through new iterations of the blockchain.bitcoin because of its volatility being considered unsuitable to be used as global currency.
Cohn clarified that this global cryptocurrency would not be “based on mining costs and costs of electricity and things like that,” a reference to the power-hungry mechanism that bitcoin and other blockchains utilize.
It will be a more easily understood cryptocurrency that will probably have some blockchain technology behind it, but it will be much more easily understood how it’s created and how it moves and how people can use it.
Cohn said that a global cryptocurrency can be expected at sometime. Elaborating more on this cryptocurrency he said this currency would not be based on mining costs and cost occurred on electricity. His statement is linked to the dependence on power by bitcoin and blockchain. The proposed currency will be easy to understand.