Why Wall Street Embrace Bitcoin?
October 31 is a magic date for some fans of cryptocurrency. On October 31 of 2008, a paper written by an anonymous person or group named ‘Satoshi Nakamoto’ released a white paper called “Bitcoin: A Peer-to-Peer Electronic Cash System” . 9 years later, all bitcoin exchanges in China were shut down while CME Group announced the launch of bitcoin futures by the end of 2017, whose BRTI (bitcoin real time index) extract price from Bitstamp, GDAX, itBit and Kraken. China has lost its influence on bitcoin price.
CCTV reports the shutdown of bitcoin exchanges in China earlier this morning but it invokes very few comments from the public.
As pointed out by Song Hongbing, author of the best-seller War of Currency, Wall Street elites embrace Bitcoin in order to contain it.
“Of course the elites want the power (and they have already established a system to put things under control. When the integrity of such system is being shaken by bitcoin, the elites want to put harness to bitcoin. Take gold for example, try to understand the role of gold and you can get a better picture of bitcoin. Then the question is what the most effective way to contain is. There is a natural demand for gold. Government may exercise regulations to depress demands. But people will bypass regulation no matter what measures are imposed.”
He explained the reason when he was asked for comments regarding the news that Gold Sachs may start trading bitcoin soon.
“If the public thinks bitcoin is valuable, then they rush into it. If the government try to destroy it with regulations, legal means and government monitoring but find their efforts futile, then what? It will make people realize how weak you are and it does have values.”
Such statement is similar to that of CME Group:
“However volatile they may be, the reason why gold and bitcoin are perceived as stores of value is simple: their money supply doesn’t grow quickly and, in the case of bitcoin not at all, some day.”-CME Group
“Since it’s indestructible, it’s better to embrace it rather than let it grow wild. If you can’t kill your enemy, then join them. If the outcome is foreseeable, then you better collaborate with it rather than fighting it.”
“The institutional investors are trying to control the trading and transaction by joining in the (bitcoin) system. The development of bitcoin could be affected by manipulating its price. That’s why Wall Street guys get involved in the system if they find bitcoin couldn’t be killed despite all administrative and legal measures. It’s the more effective and the only way to contain it. “
In the end, the institutional investors finally realize the value of bitcoin and decide to put harness on the wild horse.