So much for the promised currency / store-of-value that can't be manipulated by banks / governments.
Goldman Sachs Is Setting Up a Cryptocurrency Trading Desk
11–20 of 487 posts
Re: Goldman Sachs Is Setting Up a Cryptocurrency Trading Desk
#12Earlier quoted context omitted.
Why do you think it would have any effect? It’s still a comparatively tiny market.
The same could have been asked about the Tulip and Bulb craze.
The tulip boom and bust didn't have much of an effect on the overall Dutch economy. According to this Smithsonian article, the story has been overblown significantly:
https://www.smithsonianmag.com/history/there-never-was-real-...
Re: Goldman Sachs Is Setting Up a Cryptocurrency Trading Desk
#13Welp pretty much knew this would happen all along. I was hoping crypto would remain independent of banks, but nope. Not long before big banks take over crypto exchanges, develop dark pools, and manipulate it. Not much we can do now
Re: Goldman Sachs Is Setting Up a Cryptocurrency Trading Desk
#14Going to need some rules and regulations. Last thing we need are big banks overleveraging on crypto currencies for the excess return. When, not if, this bubble bursts hopefully it doesn't take the whole economy down with it. The whole financial market wants exposure to crypto at this point.
burst of ICO bubble likely won't take down the whole economy. BTC contracts are high return + extremely high risk, which are typical traits of junk bonds, meaning they won't be treated as investment-grade securities.
Re: Goldman Sachs Is Setting Up a Cryptocurrency Trading Desk
#15Great. Now we’re on the path to making this a systemic risk.
Oh good, I was worried that the BC bubble bursting wouldn’t have enough negative effects on the economy at large. (/s)
It won't. GSCO will price counter-party risk into the spread.
If GSCO is serious its coders will write code to run against crypto-APIs at the speed unseen by the "My exchange run on Rails" crowd.
Re: Goldman Sachs Is Setting Up a Cryptocurrency Trading Desk
#16Earlier quoted context omitted.
Why do you think it would have any effect? It’s still a comparatively tiny market.
> half a trillion USD is a tiny market What?
Apple, Google, Microsoft and Amazon all have market cap larger than 500bn.
Pretty much any 5 of the Fortune 100 has a market cap greater than 500bn, 500bn is a fuck tonne of money but compared to the aggregate size of the market it's pretty much bugger all.
Re: Goldman Sachs Is Setting Up a Cryptocurrency Trading Desk
#17Earlier quoted context omitted.
Why do you think it would have any effect? It’s still a comparatively tiny market.
> half a trillion USD is a tiny market What?
BTC market size is the $$/Yen/GBP/Euros exchanged into BTC a day and backwards, not Max(SomeOnePaidForBtc) * BTCs outstanding.
Re: Goldman Sachs Is Setting Up a Cryptocurrency Trading Desk
#18They typically do this for a few reasons: 1. High net worth clients demanding such products. 2. Obvious FOMO. 3. In case this crypto thing becomes big they don’t want to be criticized. 4. All companies are seeing a nice bump in their share prices with any association to crypto
HNWIs are definitely starting to talk about and ask for crypto products.
EDIT: I work in the area, not a shill.
Re: Goldman Sachs Is Setting Up a Cryptocurrency Trading Desk
#19Earlier quoted context omitted.
Oh good, I was worried that the BC bubble bursting wouldn’t have enough negative effects on the economy at large. (/s)
Why do you think it would have any effect? It’s still a comparatively tiny market.
It is small, but has an indeterminate reach throughout the international economy. Nobody knows where the exposures to its collapse would be. A market panic could ensue from such a collapse, followed by other vulnerabilities becoming magnified in importance to the minds of investors.
This of course is a guess, and it could well have little impact. But it seems that the risk is larger than the size of this market would otherwise be in more mature sectors.
Re: Goldman Sachs Is Setting Up a Cryptocurrency Trading Desk
#20I'm sort of surprised there's going to be a regulated secondary market for this, where the newest version of the GOP Tax plan will place a fee on this form of arbitrage[1]. Then again, I did learn today that a hot wallet I had on a crypto-trading website had folded and didn't send me any notice of shutdown; along with the time period of filing a claim having been long passed. Since there's a lot of theft and lack of accountability with these closures, maybe regulation could incentivize better data protection practices and pro-consumer behavior.
[1] https://www.bloomberg.com/news/articles/2017-12-21/tax-free-...