In recent months, rhetoric and news coverage around bitcoin has been mostly bearish. Jon Matonis, former director of the Bitcoin Foundation, injected a bullish tone at a recent Business Insider event in London.
At the event, he turned the conversation about Bitcoin being a bubble in his head. According to him, bitcoin, which is decentralized and not subject to government scrutiny, is the pin that will “explode the bubble of bond markets and fake equity markets supported by central banks.”
To be sure, bitcoin itself is subject to similar accusations. For example, bitcoin whales are said to be responsible for their wild price swings. Cryptocurrency exchanges have also been cited by regulators after allegations of insider trading.
Despite his railing against big banks and investment institutions, Matonis is not averse to entering the cryptocurrency ecosystem because they bring liquidity to otherwise unstable markets. Investment bank Goldman Sachs is a bitcoin futures clearing agency and is reportedly considering establishing a Bitcoin trading desk. “They (big banks) are going to develop futures markets, options markets, I even think you’ll start to see interest rate markets around bitcoin. We are used to hearing things about Libor, the bitcoin Interest Rate Index is Bibor, ” he said, adding that Bitcoin heralded a post-legal-tender age.
Governments around the world were increasingly sounding ominous warnings about regulating cryptocurrency markets to prevent fraud and scams. Initial coin offerings (ICOs) are especially susceptible to such activity and, according to recent reports, 81% of ICOs are said to be scams. Despite these damning statistics, Matonis is of the opinion that they should not be regulated. “Let the buyer do their research. Hopefully this has forced many investors to investigate further. No one is forcing them to invest in ICOs. If you are concerned about the risk, just step away, ” he said.