Global Cryptocurrency Coming According to Former Goldman Boss
Usually, when a Wall Street boss starts talking about a certain investment, that means the smart money has long since bought in and is most likely already looking for an exit...
An exit mainstream investors happily give them.
Earlier this week, former Goldman Sachs investment banker Gary Cohn went on the record in an interview with CNBC, stating:
I'm not a big believer in bitcoin. I am a believer in blockchain technology. 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. It will be a more easily understood cryptocurrency. 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.
At that moment, Mr. Cohn, who left Goldman Sachs in 2016, ceased to be the stodgy, old school Wall Street titan of the late 20th century (so old school that he even did a stint as chief economic advisor under President Trump) and showed a glimmer of inspiration as a man with a vision of the future.
Bitcoin's main source of value, from the very start, was its scarcity.
People even compared it to gold because at the end of the day, scarcity, along with untarnishable luster, has been the primary demand driver for the yellow metal since before the dawn of civilization.
Because bitcoins become progressively harder and harder (processing-time wise) to mine, the cost of creating a new bitcoin in the United States, as of late April, was a shocking $4,700.
In South Korea, that number rose to $26,000.
All in all, the entirety of the Bitcoin universe consumes more electricity than the nation of Denmark — which is a lot of effort and, therefore, a lot of implied value.
The problem is, beyond this scarcity, there is no use. You can't wear it. People can't gawk at your bitcoins the way they can at your gold watch. They have no practical applications.
Bitcoin's One True Purpose? To Open the Door
Nevertheless, blockchain-driven cryptocurrencies are becoming more and more relevant every day.
In the future, they will make it easier and safer than ever to transfer value free of institutional middlemen (banks) to create a more harmonious, borderless, free-flowing economic system.
So Mr. Cohn's statement did nail two irrefutable truths.
First: The world will adopt a cryptocurrency, much in the same way it adopted a fiat currency — for the past 70 years, the dollar — as a standard for trade...
Second: That currency will not be Bitcoin.
The $64 trillion question is: which one will it be?
In a world where cryptocurrencies now number more than 1,600, that question isn't an easy one to answer.
Even among the mainstream offerings, including the usual suspects like Ethereum, Litecoin, Ripple, and their various offshoots, it's hard to tell the difference or, as Mr. Cohn mentioned, explain the function.
Not all cryptos are like that, however.
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Value Rooted in Simplicity
I did a good deal of digging and managed to find one crypto, a relative unknown, that's giving life to the world's most powerful supercomputer.
This isn't some giant mainframe buried in a government bunker somewhere in Colorado. It's a crowd-sourced computing network that pools the unused computing power of its members' machines to create a global computing entity.
The value in each coin is a fraction of the value that this never-before-seen processing power will bring about as it solves the most complicated math problems, creates the most intricate models for things like weather patterns, and allows for the most intricate renderings ever created.
That's value well above and beyond the energy it took to create it.
This cryptocurrency is still considered an "altcoin" because it's not too well known and has a market capitalization still south of $1 billion, but rumor is that it's slated for a Coinbase listing in the next few months.
For a crypto, that's like getting listed on the NYSE, meaning it's about to get targeted by millions of new investors, including the major institutions.
And if that's still too nebulous a concept, here's one that should appeal to even the most traditional.
A cryptocurrency that's backed by the oldest investment there is... the very same yellow metal to which all other commodities can be compared, including Bitcoin itself.
A small Canadian mining company came up with the idea to help other gold miners finance their projects, but this idea has incredible potential for application elsewhere.
It's still in a super early stage, but the company working on this could potentially revolutionize one of the oldest industrial processes known to man.
Correction Over... Full Speed Ahead
No matter which way we go on this, one thing seems clear at this point: We are going to be living in a world where our traditional concept of money will have to at least share, and at most completely yield to, a blockchain-based one.
People will try to resist, but they also resisted when paper money first arrived to supplant coins.
They resisted when checks, and then credit cards, started to replace cash.
They resisted then, and they will resist now, but in the end, this will become commonplace, and one day we will all be wondering how we ever lived before the era of blockchain-rooted currencies.
For a detailed report on the new cryptocurrency I mentioned above, now in the process of building the world's most powerful supercomputer, click here.
For more information on the company introducing a cryptocurrency based on the oldest currency of them all, click here.
Fortune favors the bold,
Coming to us from an already impressive career as an independent trader and private investor, Alex's specialty is in the often misunderstood but highly profitable development-stage microcap sector. Focusing on young, aggressive, innovative biotech and technology firms from the U.S. and Canada, Alex has built a track record most Wall Street hedge funders would envy. Alex contributes his thoughts and insights regularly to Wealth Daily. To learn more about Alex, click here.
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