Ex-Goldman Sachs CEO Issues Stark Bitcoin Warning As Price Suddenly Dips Under $30,000

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Bitcoin has exploded by 2021, demanding the attention of Wall Street and regulators alike.

Bitcoin price broke new ground last month for the first time in three years, rising to over $ 40,000 per bitcoin before falling slightly (even as smaller cryptocurrencies continue to rise).

Now that bitcoin price is struggling to hold above $ 30,000 per bitcoin, former Goldman Sachs GS chief Lloyd Blankfein has warned that regulators could take action against bitcoin if it continues to grow.

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Former Goldman Sachs CEO Lloyd Blankfein warned of Bitcoin’s recent success … [+] lead to official action.

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“If I were a regulator … I would be hyperventilating over the success of [bitcoin] For now, I’d be prepared to deal with it, “Blankfein told CNBC this week, warning against Bitcoin as a medium of exchange or as a store of value due to Bitcoin’s semi-anonymous nature and its wild price fluctuations.

“They don’t know whether or not you are paying the North Koreans or Al-Qaeda or the Revolutionary Guard,” Blankfein said, adding that Bitcoin’s regular 10% daily movements “make the value element a little harder.”

Bitcoin rose to a high of $ 42,000 earlier this month but fell below $ 30,000 yesterday amid fears the Bitcoin bubble could burst soon.

Blankfein also reiterated the concern “a particular concern” raised earlier this month by the new US Treasury Secretary and former Federal Reserve chairwoman Janet Yellen, who warned of the illegal use of Bitcoin and cryptocurrency.

“I think a lot [cryptocurrencies] are used primarily for illegal funding, at least in a transactional sense, and I think we really need to investigate how we can limit their use and ensure that anti-money laundering doesn’t happen through these channels, “Yellen told the Senate Finance Committee.

Many members of the bitcoin and cryptocurrency community have resorted to Yellen’s claims, arguing that illegal transactions only make up a tiny percentage of bitcoin and cryptocurrency usage.

However, as Bitcoin and crypto become more popular, regulators could be under pressure to act, according to Blankfein.

“At the end of the day, though [bitcoin] How could regulators, so focused on fighting money laundering, “fail to intervene” if they were ever big enough to be substantial and a real medium of exchange? Do we want this to work well in the long term? “said Blankfein, asked.

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Bitcoin price has struggled to regain momentum this week after a strong start to the year. … [+] Briefly dip below $ 30,000 per bitcoin.

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Despite his warnings, Blankfein sees a path to success for Bitcoin, but believes that compromises must be made.

“”[Bitcoin] but could be workable [regulations] will undermine the freedom and lack of transparency that people like in the first place, and that is the enigma Bitcoin has to grapple with, “he said.

With Bitcoin’s strong start to the year, institutional investors are increasingly turning to cryptocurrencies, suggesting that we are likely to learn more about Bitcoin from Wall Street and regulators in the coming months.

“We entered a new bull market when Bitcoin topped $ 20,000 high in 2017, sending a signal that institutional investors and large hedge funds are ready to bet that crypto is real capital,” said Kay Van Petersen, global macro strategist at Saxo Bank, said in comments sent via email.

“It’s still very early for crypto. The only certainty is the volatility and the many different views on space and the overhang of regulatory risk.”