Jon Matonis, one of the co-founders behind the Bitcoin Foundation and an executive at VISA, stated that the entrance of major banks and financial institutions like Goldman Sachs will lead to an increase in the liquidity of Bitcoin, which as a result ultimately, the Bitcoin price will surge, Business Insider reported.
“I think it’s fabulous that they’re getting into it because it brings in new liquidity. They’re going to develop futures markets, options markets, I even think you’re going to start to see interest rate markets around bitcoin. We’re used to hearing things about Libor, the index for bitcoin interest rates is Bibor,” Matonis said.
Matonis further emphasized to skeptics like Jamie Dimon that have described Bitcoin as a bubble, that Bitcoin is not a bubble, but rather a pin that would pop the global financial bubble. He stated that equity markets and bond markets are the multi-trillion dollar bubbles that would inevitably burst themselves and Bitcoin is safety the net.
“To the people who say Bitcoin’s a bubble, I would say bitcoin is the pin that’s going to pop the bubble. The bubble is the insane bond markets and the fake equity markets that are propped up by the central banks. Those are the bubbles,” Matonis added.
In the past couple months, the Chicago Board Options Exchange (Cboe) has proposed to the U.S. Securities Exchange Commission (SEC) to allow bitcoin exchange-traded funds (ETFs) on U.S. stock markets like Nasdaq and the New York Stock Exchange (NYSE). The entrance of large financial institutions like Goldman Sachs will lead to more institutional and retail traders entering the cryptosphere. Overall more investors will flood the space and mainstream adoption will start when the big boys get involved.
Meanwhile, major U.S. and UK banks like Bank of America, JPMorgan Chase and Citibank have initiated cryptocurrency blockades denying customers the ability to purchase cryptocurrency with their credit cards, delaying their inevitable replacement.
Speaking of JPMorgan in a recent annual financial report it was revealed they are scared of cryptocurrency disrupting their business model.
Which they should be since with cryptocurrency there is no need for a central banking authority anymore. Eventually the big money investors, however, will have to get involved in cryptocurrency, after all the voices calling Bitcoin a bubble and fraud are drawn out by the crowds of people seeking to buy digital currency. As a result, they won’t want to miss out and will FOMO in.
Especially since, the Financial Stability Board, G20’s global watchdog, doesn’t consider cryptocurrencies a risk to financial stability or see a reason for regulation and all the big regulation talks are over to this writer’s knowledge for the year.
No matter how hard they try to suppress this innovative technology the end result will be the same, those hoping on blockchain and Fintech to fail are living in a fantasy world and are probably the same people who said the internet wouldn’t be a revolutionary innovation.
Bitcoin is currently trading at [FIAT: $7,012.56] up 1.96% according to Coin Market Cap at the time of this report.
Now that they've figured out ways to manipulate the price, they're finally ready to jump on board. They had to get the price down first, IMHO.
Futures price is readily manipulatable. But most of the volume isn't in the futures markets. Of course those seeking to manipulate price will do what they may.