Given that the Brexit is still fresh in our minds — the big question of “how will the global financial elite diversify their assets” is one that every money manager and their clients are discussing this weekend. Great timing for a Bitcoin post! I sent a tweet out earlier this morning (followed by a tweet storm!) and there was a lot of activity around it and I felt compelled to explain it in more detail.
One of the key themes of a prior post I wrote in 2014, was that the Bitcoin exchange infrastructure for the ordinary man on the street was not yet in place, and that this fact would be partially responsible for the subsequent sideways/downward trading in Bitcoin that eventually occurred as predicted.
To recap a quote from that post (dated March 31st 2014), entitled Finding Equilibrium : Lack of trust with exchanges and limited ability to purchase Consumers are spooked right now. MtGox ran away with $500m+ in Bitcoins and is bankrupt. No one really trusts any of the exchanges — even some smaller exchanges went under the past 3 months. The only “safe” place to buy Bitcoin in the USA is via Coinbase and they are not an exchange. The US does not have a single licensed Bitcoin exchange and the rest of the world is reeling from MtGox. Bitstamp is proving to be the new global exchange of choice but the media has done a great job of keeping new potential Bitcoin users at bay with the usual inflammatory headlines whenever something negative happens in the Bitcoin space. Most people I know who want to buy and sell Bitcoin are doing it “off-book” — which means the transactions are going instead via trusted networks. This will take buyers out of the marketplace and will ultimately […]
