Topic: [Bearish] Keep bitcoin away from the real economy, says billionaire (Read 883 times)

I think he is right but do you think wall street is going to stop, they want to make as much money as they can and they are going to try their experiments with bitcoin, there is always a bubble, we had the dot com bubble and then the mortgage bubble, it seems crypto is next, but who cares, if they want to buy my  bitcoin for tens of thousands of dollars why I'm going to stop them.

He is making legitimate arguments, actually. I thought it would be another FUD fest. There is no way to know but try though.

Well, I think it can affect global economy. Assume bitcoin is highly adopted by people who don't really care about it as a currency and solely consider it as a good investment. One day the price reaches something outrageous like $50k and people start selling evenrything, because they believe that this price is the best btc can do and the potential sums in fiat satisfy them a lot. So, the hell lot of btc is sold for local fiat. Next these people, having a lot of unexpected by governments money suddenly can afford to buy houses, cars etc. This results in devalvation of local currencies, thus leading the the world crisis.

I think they need to define further what they meant of real economy, it might confuse them. I think they are confused on what Bitcoin is and how Bitcoin works, they might need to ask the reason why the Rothschild invested in Bitcoin as well, since they are a family of bankers, they might have understand the reason why Bitcoin is a great investment. This only means that they fear Bitcoin and they realize that Bitcoin will replace Fiat in the future.

Even on those words i dont really believe that bitcoin now would possibly hit up 10x-100x-1000x on its current price as of now. On previous years its still possible while the price is still cheap but now not all people do have the capability on buying a whole bitcoin which is almost 8k usd price as of this writing.Analysis of bringing bitcoin to economy is actually right it can totally mess up the economy since price volatility cant really be stopped no matter what.This is why bitcoin would really still remain into its place on where it was now.It would really be better just this way.

But do you reckon that the playing field will change once Wall Street enters the arena? You may also have underestimated the influence of the market on the behavior of the people. Our resolve have not been tested yet because bitcoin is always going up since 2015. But if they cause another financial crisis, that threatens bitcoin to crash lower than $1000, I reckon it will be the end of the world for some of the strongest hands making them dump their coins.

Most of these people won't bother buying or storing bitcoins. They will just trade on contract-for-differences. When the price of bitcoin increases, they will get fiat currency deposited into their bank accounts and be satisfied with that.

Forget all that, Bitcoin is useless because of all the hackers. I read more and more "all my coins are gone". How will uncle Phil protect his coins, if even pros can not protect theirs. I have mine on a paper wallet for a long time and I am too scared to "activate" them.

Your money can be also stolen from your pocket. Yes. But usually not thousands or ten thousands of dollars at once.

bbc.reporter? what kind of username is that? I know of another user named european central bank. maybe i should have called myself 'Prime minister of the UK'. But is that legit, you are a bbc reporter? In that case as a mainstream reporter I have to consider that you are spreading the party line, which would most likely be FUD

I hadn't considered that the  futures market would include scam coins. I don't really see that as a valid concern though. The more concerning thing is that they come to control the 'spot' price of bitcoin in similar way to the control of the spot price of precious metals through futures markets. In other words they manipulate the price of bitcoin without 'delivering' real bitcoin to investors who are only really interested in fiat profit. In other words they own the price and hence the market. In that event I would assume they have to manipulate up before they really have control (for reasons similar to Torque suggesting that the masses own the majority of the asset.)

He/she works for the media, what do you expect?

I hope more future markets adopt bitcoin and altcoins en masse.

These news are bullish. The price will skyrocket. CME is implementing ways to block panic-selling and thus keep the price up.

Billionaries are worried because this is a real threat to the status quo.

You just mentioned a shitcoin. Or two. Not sure.

But all this problem is because people can not stop buying anymore, they all are excited because they dont want to be late to the party, and that is the reason of why they are still investing in bitcoin instead of putting all their money into a bank. How would satoshi feel about all those words? he might be one of the most blessed guys on this world because all his goals and visions are now becoming true.
It is amazing guys, i can not realize how fast it is growing everyday, it seems that it will never stop going up

Likely true. Somewhat related, I'd love to see this chart updated on the age of coins:

https://www.reddit.com/r/Bitcoin/comments/2n205b/an_area_chart_showing_the_distribution_of/

Everyone have been expressing their opinion concerning the way they see bitcoin and how it purported to them in their own light. But the way they make it seems just like the constitution where someone will be relying on it to perform and action while the other will be relying on that same constitution to stop that same action. But I would agree with the school of thought against the future trading because that is calling for more speculations to determine the direction of price. Currently, people speculate and it sometimes turn out to be correct, at other times, it turns out to be the wrong one. But with such introduction, it then mean price will be decided based on the feelings of the majority of people while developments in the field of blockchain, adoption of blockchain technology and bitcoin, will contribute lower input into such determination.

I am not too worried about the possibility of people opening shorts on bitcoin, which means betting against its rise. Shorts are widely used in the stock market and very rarely affect significantly big companies, like Johnson and Johnson or Coca Cola. Smaller companies can be very affected though. If there are short attacks on bitcoin there will be some downward trends, but bitcoin will get out stronger than ever as it has happened with many threats before.

You guys saying he's FUDing or bearish on Bitcoin, I don't think some of you watched the video.

Let me help you out here. Go to:
https://www.cnbc.com/2017/11/15/thomas-peterffy-keep-bitcoin-away-from-the-real-economy.html

1. Start the video on that page, jump to @3:40

2. Listen carefully to what Thomas Peterffy says

3. Note: He is the Chairman and CEO of Interactive Brokers
https://www.interactivebrokers.com/en/index.php?f=564

4. Connecting the dots yet?  

This isn't something notable in my opinion, It's a point trying to be made based on someone's feelings for Bitcoin, but does in no way act as a prediction. I think that it's worth mentioning that cnbc has also been hosting a lot of pro-bitcokn content lately, so it'd might be them trying to balance things out with some irrelevant anti-bitcoin stuff to please viewership.

I do not see how could the fact a scam coin becoming very worthy could crash the entire economy. In fact, the more money will be in a given crypto-currency, the more it will be resistant.

Is this guy just pre-scapegoating for the coming financial crisis which has nothing to do with Bitcoin or cryptocurrencies?

There is a lot of hidden meaning and complexity in Peterffy's response. I'll try to summarize.

It has everything to do with how equities, commodities, other assets, etc. are structured on Wallstreet. For the vast majority of these asset classes, the Average Joe masses only collectively own about 1% of any of them. What this guy is backhandedly trying to say is that the other 99% (think pre-mined) are in corporate industry "strong hands" that won't foolishly just sell it all in the event of something bad happening (e.g., stock market correction, black swan event, terrorist attack, etc.). Also these "strong hands" asset products are re-hypothecated and re-leveraged as collateral against other investments. The fear of a massive sell off by thousands or millions of weak, jumpy hands, creating a cascading domino of margin calls, is low. Thus volatility and systemic risk is low.

But Bitcoin is different. 90+% of this asset class got into Average Joe's hands first, before Wallstreet coming in. And once Bitcoin futures and ETF derivatives get created, and then are possibly leveraged against other assets/investments as collateral, that poses a long term systemic risk problem to Peterffy. Because he believes that Average Joes are weak sheeple who are more prone to panic and sell all their bitcoin (the underlying hard asset), which would induce and create massive volatility in futures/derivatives since they hold A LOT of it (actually the MAJORITY of it). He's also worried about the systemic risk to short sellers who may not be able to cover a sudden "to the moon" price rise (e.g., someone is trying to corner the market using massive leverage).

Personally, I believe he is both right and wrong.

He's right about the clearing of bitcoin trades. Wallstreet tends to create their own fkn problems. So Bitcoin should be isolated from all other clearing house products. Available margin should be low. Everything should be fully collateral backed. Leveraging and rehypothecation of Bitcoin derivatives against other investment products should be illegal and not allowed.

But he's wrong and condescending about the masses. I think they have stronger hands than over leveraged Wallstreet does. And during a sudden bearish event, if anything I would hope that the masses would be BUYING more bitcoin, not selling it.