Matonis: Goldman Sachs’ involvement to boost BTC
The involvement of major banks and financial institutions such as Goldman Sachs in the crypto-sphere will boost the profile and price of Bitcoin, says Bitcoin Foundation co-founder and VISA executive, Joe Matonis.
As more trusted organizations get involved in the coin, which has endured a rough Q1, peoples’ trust in cryptocurrencies like Bitcoin will no doubt grow.
Indeed, the name Goldman Sachs has the power to do wonders for BTC. Unfortunately, for many, Bitcoin remains intrinsically linked to a criminal underworld, thanks to sites like the now-defunct Silk Road.
These black market sites, which operate on the ‘dark web’, allow users to buy and sell contraband, with Bitcoin often serving as the base currency.
Goldman Sachs’ entrance will provide a sense of legitimacy and stability to a market which has long been tainted by uncertainty, volatility and outright criminality.
“I think it’s fabulous…”
Matonis told Business Insider: “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.”
“… the pin that’s going to pop the bubble”
Matronis has a retort for those who claim Bitcoin is nothing more than a financial bubble, doomed to burst. He argues that it is the old systems, i.e., the bond markets, the ‘fake equity markets’, and the central banks, that are ‘the bubble’.
Bitcoin, he feels, is superior because it is decentralized. As such, it cannot be controlled or manipulated like other financial markets.
Additionally, thanks to the blockchain technology that underpins it, BTC is truly transparent. Every transaction is public and every execution final.
Matronis 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.”
Watch this space…
Many ‘whales’, i.e. big-time investors, took advantage of the recent slump by ‘buying on the dip’.
This is arguably why other financial institutions like Goldman Sachs are acting now.
Because who knows when Bitcoin will rally again and, once it does, who knows when it’ll stop?