Blankfein is known for his forward-thinking about the crypto market and its potential as the next evolution of our global financial ecosystem. In fact, he has often stressed that investors should consider cryptos like Bitcoin (CRYPTO:BTC) as an emerging asset class.
“Look, my view of it is evolving,” Blankfein said. “I can’t predict the future, but I think it is a big thing to be able to predict the present, like, ‘what is happening?’ And I look at the crypto, and it is happening.”
By “happening,” Blankfein means that the ecosystem around cryptocurrencies has evolved and matured after digital assets attracted trillions of dollars in value in the past year. Big U.S. bank and financial institutions like Morgan Stanley (MS), JP Morgan (JPM) and Goldman Sachs have begun offering crypto exposure to their clients. At the same time, the fast-growing crypto finance industry through its DeFi platforms has created the right structure for consumers to trade, transfer, borrow and lend cryptocurrency.
Cryptos continued their weeks-long nosedive on Monday following the Fed’s plan to cut back its support for the economy, spelling trouble for risky assets. The total market capitalization of cryptos fell below $2T last week after reaching a high of $3.1T in November.
“It’s lost a lot of value, but at a point where it’s trillions of dollars of value contributing to it and whole ecosystems are growing around it,” Blankfein said. “Of course, we have the benefits of instantaneous transfer and reduction of credit risk and all the benefits of blockchain.”
In the past, Blankfein has challenged Bitcoin‘s qualification as a store of value, saying that its rise must trigger hyperventilation crises within regulators.
“I may be skeptical, but I’m also pragmatic about it,” Blankfein said on Monday. “And so guess what? I would certainly want to have an oar in that water.”
Bitcoin was up less than one percent over the 24 hours to 10.10 a.m. PT on the coinmarketcap.com, trading at $35,374. Month-to-date, BTC prices have fallen 45%. Ethereum (CRYPTO:ETH) had dropped more than 3.5% to $2,340. Month-over-month the second-biggest token prints 42% lower.