Cryptocurrency & Blockchain Business

BITCOIN EXPERT WARNS BANKS WILL ENTER THE CRYPTO MARKET & CAUSE MASSIVE PRICE SURGE

Jon Oliver aptly summed up the danger of blindly investing in the cryptocurrency when he described it as, “Everything you don’t understand about money combined with everything you don’t understand about computers”. Accordingly, Bitcoin has more than halved in value this year, causing critics to call it everything from a deflating bubble to a pyramid scheme.

However Jon Matonis, co-founder of Bitcoin Foundation (formerly an executive at VISA), told Business Insider the involvement of major banks like Goldman Sachs will lead to an increase in the liquidity of bitcoin, and ultimately, the price.

“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.”

Due to its lack of liquidity, the cryptocurrency market is extremely volatile, and the daily trading volume of major currencies like bitcoin has reduced significantly since the crypto-market crashed in January. However this drop, according to CCN, has allowed institutional investors in the futures market (like Goldman Sachs), to manipulate the market, which is one of the reasons it has demonstrated correlated price movements over the past few months.

Fielding questions about this downward trend, Matonis said, “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.”

Although this statement will ring true with those who distrust governments and international financial institutions, it remains to be seen when major banks will actually enter the crypto-market. If they do though: it might be time to lay a few cheeky bets—or investments, for those feeling confident…

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JAMES BOOTH

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