John Matonis, a Bitcoin Foundation founder, told Business Insider that “the concept of Bitcoin being in a ‘bubble’ was hypocritical.” Instead, Matonis believes that BTC is the “pin that’s going to pop the bubble.”
From his perspective, the ‘bubble’ is to be found in the existing financial markets. He said: “The bubble is the insane bond markets and the fake equity markets that are propped up by the central banks.” That’s fighting talk, Matonis.
Those of us involved in the crypto world have become familiar with the claim that BTC and other altcoins are operating in a ‘bubble’, and the recent downturn in the crypto market, after its late 2017 highs, convinced mainstream media commentators that they were absolutely right to maintain the ‘bubble’ talk.
This week we have seen a slight reversal in fortunes for the Top 10 altcoins, although it is too early yet to make a call about it being once again a bull market; there are still too many bears around. However, during the decline, BTC has improved its technology and its user interface as a payment method.
Matonis however, is very bullish about what he sees as an upcoming scenario where the major banks increasingly adopt cryptocurrency and claims this will bring extra liquidity to the crypto markets. 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. We’re used to hearing things about Libor, the index for bitcoin interest rates is Bibor.”
A quick read of the headlines in the main crypto press certainly seems to indicate that various central banks are experimenting with the use of blockchain-based applications and cryptocurrency transactions. The Russian-owned Gazprombank is piloting cryptocurrrency transactions in Switzerland and another Russian bank has selected Switzerland to open its own crypto exchange. If you’re wondering why these banks have chosen Switzerland, it’s because the Russian government is reviewing crypto regulations and its current laws prohibit crypto operations. Others are also testing the water, but what is clear is that the tide is slowly turning as big finance recognises the advantages of the blockchain. It may even learn to love it.