Jon Matonis, Founding Director at Bitcoin Foundation, dismissed fears of a Bitcoin bubble bursting in a recent interview at the Innovate Finance conference in London.
Bitcoin, the world’s best known cryptocurrency, rose to above $20,000 in December 2017 but has since plunged to about the $7,000 level, with market sentiment bearish and many economists viewing the rise as fall as bubble-like behavior that will not happen again.
Equity and bond markets are the bubbles
However, Matonis told Business Insider:
“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.”
“Hard-coded into the original block zero, genesis block, of bitcoin was a headline from The Times of London saying, ‘Chancellor on the brink of second bailout for banks,'” Matonis said.
“All they’re doing is papering over the bulls— infrastructure. That headline epitomizes what bitcoin is about — that’s why it was hard-coded in there.”
Wonderful thing that Goldman Sachs is considering entering crypto, said Matonis
Matonis believes that it’s “wonderful” that big investment banks such as Goldman Sachs are thinking about entering crypto because of the new liquidity and new futures and options markets.
“I think it’s fabulous that they’re getting into it because it brings in new liquidity,” he said.
“They’re going to develop futures markets, options markets — I even think you’re going to start to see interest-rate markets around bitcoin,” he said. “We’re used to hearing things about Libor, the index for bitcoin interest rates is Bibor.”
Video – What is a cryptocurrency
A cryptocurrency is a type of decentralized encryped digital currency. Unliked the dollar, pound, euro, and yen, it operates without a central bank. If you want to learn more about this type of digital currency, watch this video we created.