Jon Matonis, co-founder of Bitcoin Foundation, has dismissed the negative investor sentiment that the crypto market is a bubble about to pop. Instead, Matonis stated that the fixed income bonds and equity markets around the world which are being inflated artificially by central banks, thus working as an unofficial syndicate.
Media Rings Bubble Bells
It must be noted that not too long ago, bitcoin was surging up around the value of $20,000 per coin during the end of 2017, but has since plunged to around $ 7,000 per coin.
This dramatic change in value led market skeptics to believe that the crypto sector is a bubble awaiting its eventual burst. In an interview with Business Insider, Matonis responded in the following to such sentiments:
“The bubble is the insane bond markets and the fake equity markets that are propped up by the central banks. Those are the bubbles.”
However, even after expressing his skepticism towards the current financial system, Matonis is still optimistic about the big banks like Goldman Sachs entering the world of cryptocurrencies.
The Bitcoin Foundation was set up by Matonis in 2012. The non-profit was created to help compensate and represent the core developers of the bitcoin protocol, and bitcoin in general, in legal, administrative, and public proceedings.
Institutional Money Will Bring Liquidity
According to him, the big banks will bring in a lot of liquidity along with them which will help to “mature the market and reduce volatility.”
Matonis further added, “They’re going to develop futures markets, options markets, I even think you’re going to start to see interest rate markets around bitcoin.”
The Bitcoin Foundation chief is also against the need for regulation of crypto-markets in the financial system. He opines that the buyer should do his due research before purchasing cryptocurrencies, instead of relying on regulatory frameworks to control his investment.
Speaking of last year’s ICO craze, Matonis said: “No one is forcing them to invest in ICOs. If you’re worried about the risk, just walk away.”
Authorities Around The World Working On Regulation
Despite these risks assumed by the wayward investor, the world has already seen a lot of countries take initiatives towards proper regulations.
Russia has already prepared guidelines for ICO regulations, whereas the UK has constituted a task force to investigate the pros and cons of digital currencies.
Moreover, we can begin observing a pattern when it comes to countries’ stance on digital currencies.
Despite Matonis’ anti-regulatory opinions, governments all over the world, no matter how different from each other, seem to be in unison regarding one thing at least: The crypto markets must be regulated.