David Solomon is a man of extensive variety. Aside from his “investment banker” title, he is also a record producer. The 56 year old was the head of the Investment Banking Division for Goldman Sachs for a decade, between 2006 and 2016. Prior to that, he was the Global Head of the Financing group. Beginning October 1st, 2018 he will be the CEO of Goldman Sachs, taking the place of Lloyd Blankfein. David is also a member on the Board of Trustees for Hamilton College in New York, the college he graduated from. The Robin Hood Foundation, a poverty-fighting organization, also has Solomon serving on their board. On the more artistic side of things, he is an electronic dance music (EDM) producer by the name of “DJ D-Sol”.
It is no doubt that he sets out to be well versed. Though his most recent success as the soon-to-be sitting CEO of Goldman Sachs is conjuring up the most talk. Goldman Sachs is one of the most important and powerful banks in the world. Though they are the fifth-largest U.S. bank, they are extremely prominent in the investment banking and financial service providing worlds. Their total assets stand at $916 billion.
At the age of 37, David began work as a partner with Sachs in their leveraged finance team. Seven years later, in the year 2006, he was promoted to the investment banking division as the lead for a decade. Solomon became co-chief operating officer in 2016. Brining us to the current year, David will be succeeding Lloyd Blankfein in October as the CEO of Goldman Sachs.
A major difference between David and Lloyd is their stance on cryptocurrencies. A cryptocurrency is a “digital currency or decentralized system of exchange that uses advanced cryptography for security”, according to dictionary.com. An example of this is the very well known “Bitcoin”. Bitcoin is a digital currency using cryptography that can be issued in any fractional denomination. As stated in the definition of a cryptocurrency, bitcoin has a decentralized distribution system.
Online stores and businesses are started to get behind cryptocurrencies, and popularly the use of Bitcoin. Cryptocurrency as a whole is a growing world. Several other companies are building their own cryptocurrency systems. However, not many people are happy about the idea of virtual money.
Times are changing involving financial banking. We are looking at the possibility of virtual currency amongst other specifics in the future versus just physical money like we are used to. Just as with most changes to the norm, there are skeptics and those afraid of change and new ideas. This is a complex world to understand, especially because it is not fully developed and ever growing. But David Solomon believes that it is important for Sachs “adapt its business and evolve to the environment”.
David himself has publicly stated he is not against the idea of cryptocurrencies. Change is especially scary to such a large bank with an unparalleled foundation of importance. However, those at Goldman Sachs must be agreeing with Davids visions to appoint him as CEO of the company.
Although David is open to adding these “assets” to the likeness of Goldman Sachs and their business, he wants to do so carefully. Of course, this has to be done given the importance of the bank as a whole.
Although current sitting CEO, Lloyd Blankfein, is openly not interested in the idea of cryptocurrencies, Goldman Sachs is. They are one of the most traditional banks that are not completely opposed to the idea of cryptocurrency. They even have investments in Circle, which is a cryptocurrency related startup. Circle themselves have even recently proposed the creation of a U.S. dollar substitute in virtual form. Given that, it is clear Goldman Sachs is open to adapting to what the future may hold. This could be the stepping stone for other major banks and largely known companies to follow suit.
Solomon has been involved in offerings between Goldman Sachs and their client on bitcoin derivatives. This is an option that would let their customer bet on the performance of these cryptocurrencies.
More On Cryptocurrency:
Cryptocurrencies validity is determined through the use of a blockchain. A blockchain is a digitalized and decentralized ledger where transactions are made in a form of cryptocurrency and chronologically and publicly recorded. Currently blockchains are being looked at to use for virtual money, payment processing and transferring, and banking. However, possible uses for this technology are endless and ever developing.
Other Important Cryptocurrencies Aside From Bitcoin:
Bitcoin is one of the most well known forms of cryptocurrency to date. However, there are several other forms being created or already up for use.
Ethereum does not compete with Bitcoin like some other forms of cryptocurrency. Bitcoins blockchain tracks ownership of their own currency, but Ethereum runs programming codes for its users applications. Ethereum is used to create trustworthy custom crowdfunding platforms, some using their own cryptocurrency. But since applications are also decentralized, they can only be built through the Ethereum network itself. Unlike Bitcoin, most stores do not currently accept Ether.
Litecoin is becoming a major platform. It works similarly to Bitcoin, but worth a little less. It is easier to mine Litecoin and quicker to move between people since it has a faster block generation. It’s encrypted to prevent accidental spending as well all computer viruses. It’s a more simple platform than Bitcoin; for those who want to earn money faster and move smaller accounts.
These are just two popular forms of cryptocurrencies expected to continue to grow. There are more that are worth looking into for personal preference and cryptocurrency education like: Ripple, Dash, Zcash, and Monero.
The future of banking through cryptocurrency is unpredictable, but possibilities are endless. This just may be a step in that direction for the power company, Goldman Sachs.