Jon Matonis claims Bitcoin is the ‘pin to pop’ the financial bubble
Bitcoin Foundation founder says central banks have financial bubbles such as fake equity markets
Jon Matonis, economist and founding director of Bitcoin Foundation made sure to confirm his belief on the future of Bitcoin, discarding any fears of Bitcoin being a bubble. On 2nd April 2018, Jon Matonis participated in the Innovate Finance conference held in London. At this conference, during an interview with Business Insider, Matonis spoke publicly to the media publications highlighting that the idea of considering Bitcoin as a ‘bubble’ was hypocritical. According to his statement, the fake equity markets propped by central banks were the real bubbles;
To the people who say bitcoin’s a bubble, I would say Bitcoin is the pin that is 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. Those are the bubbles.
The low value of Bitcoin in the market makes non-crypto news sources claim that it will not fetch the value it reached in end of 2017. Bitcoin reached 20,000 USD during that period of time, which the sources consider showing characteristics of a bubble and that something which would not be repeated. As of 2nd April 2018, according to Bitfinex.com, the current value of Bitcoin is 6,997 USD.
Bitcoin with time has managed to become more user-friendly than before with technological robustness. However, there are some conventional voices in the financial community that discourage the purchase of cryptocurrencies.
Jon Matonis on the future of Bitcoin
Matonis believes that it is a fabulous fact that banks are getting into cryptocurrency as it brings in new liquidity. He further mentioned the following in his statement;
They are 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.
In 2012, Matonis initiated the Bitcoin Foundation with a target of transmitting the growth of digital currencies. However, there were several issues and challenges faced while following this strategy by the foundation over the last few years.