A prominent Bitcoin (BTC) advocate, Jon Matonis, has dismissed claims that the virtual currency market is a bubble waiting to burst. Instead Matonis said that it was the stock and bond markets across the globe which were in a bubble courtesy of central banks. Towards the end of last year the price of Bitcoin rose to more than $20,000 per month but has since fallen to below $8,000. This has led skeptics to claim that the digital currency market was a bubble waiting to burst.
“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,” said Matonis to Business Insider during the 2018 Innovate Finance conference that was held in London earlier in the month.
Age of post-legal tender
Additionally Matonis said that the world was entering an age of post-legal tender where decentralized virtual currencies would take over sidelining central banks. Before Matonis assisted in setting up Bitcoin Foundation six years ago Matonis worked as a trader of currencies at Sumitomo, a Japanese bank and also at Visa. Bitcoin Foundation was started to assist in compensation Bitcoin protocol’s core developers. He was on the board of the foundation till 2014 and is currently an executive director of the foundation.
Though he remains a skeptic of the current financial system the Bitcoin advocate has welcomed big financial institutions that include Goldman Sachs which are eyeing the digital currency world. According to Matonis one of the benefits such banks could bring to the virtual currency world is that they would add new liquidity thus helping the crypto market mature and consequently reduce volatility.
With regards to the clamor for the regulation of digital currencies Matonis is of the view that it is ill-advised and unnecessary. According to Matonis it should be up to the consumers to conduct their own research as no one is being forced to make investments in Initial Coin Offerings. Matonis added that the model of issuing utility tokens should be allowed to thrive as it is an alternative to the existing fundraising model that regulators are used to.