BTC is a Pin, not a Bubble, BTC Foundation Founder Says

Jon Matonis thinks it's great that big banks are getting interested in crypto
02 April 2018   172

Co-founder and CEO of Bitcoin Foundation Jon Matonis sure that the fears associated with the "bubble" of cryptocurrency are unreasonable. On the contrary, this is just the stock markets are always artificially "inflated" by central banks, he said in an interview with Business Insider at the Innovate Finance conference in London earlier this month.

To the people who say bitcoin’s a bubble, I would say bitcoin is the pin that’s 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.

Jon Matonis

Co-founder and CEO, Bitcoin Foundation

He is confident that now the economy is moving away from "legal currencies managed by banks", decentralized assets like bitcoins support this shift.

Prior to the Bitcoin Foundation, Matonis was a trader in the Japanese bank Sumitomo and Visa. Non-profit organization was founded to support core-developers of bitcoin-protocols. Matonis was on the foundation's board from 2012 to 2014 and to this day holds the post of executive director.

Despite skepticism about the existing financial system, he is sure that it's great that big banks like Goldman Sachs are showing increasing interest to the world of cryptocurrency.

They’re 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.

Jon Matonis

Co-founder and CEO, Bitcoin Foundation

According to him, regulators around the world are trying to find a "common language" with cryptocurrencies, and in the UK they recently announced the creation of an appropriate work group.

I think we should operate in an environment of caveat emptor, let the buyer do his research. This hopefully has forced a lot of investors to do more research. No one is forcing them to invest in ICOs [initial coin offerings]. If you’re worried about the risk, just walk away.

Jon Matonis

Co-founder and CEO, Bitcoin Foundation

In May last year, the executive director of the Bitcoin Foundation, John Matonis, joined the nChain blockchain company. 

Myth of Total Illegal Bitcoin Use rejected by Scientist

Quebec Chief Scientist (Canada), Rémi Quirion, has issued a rejection for the “myth” that illegal transactions are among those for which BTC is basically used
25 April 2018   62

Chief Scientist is closely connected with the Fonds de recherche du Québec (FRQ) – a publicly funded establishment founded for “providing support for the production and dissemination of knowledge.” Mr. Quirion states that Bitcoin is often accused of being a good tool for crime or money laundering, adding that “Even Christine Lagarde, president of the International Monetary Fund (IMF) recently called for more regulation of cryptocurrencies to counter illegal activities.”

Quebec’s Chief Scientist insists on bitcoin offers its customers “pseudonymity,” rather than total anonymity, which detracts from its potential illicit usage. Mr. Quirion cited Jonathan Hamel, who has denied that the public nature of bitcoin’s blockchain diverts from its anonymity.

Every transaction is transparent and public. They are indeed recorded in a kind of ledger whose copies are distributed among thousands of computers.
Jonathan Hamel, Cryptocurrency Analyst, Associate Researcher, Montreal Economic Institute

Erwan Joncheres, Cryptocurrency analyst, is also mentioned in the document.  He has also denied statements that bitcoin and money laundering go alongside.

I think that tax evasion and money laundering are anecdotal on cryptocurrency networks. Since bitcoin is transparent, it will be very easy to identify all the people trading on an online exchange or portfolio platform.
Erwan Joncheres, Cryptocurrency Analyst

The document underlines the research conducted by the Center for Sanctions and Illicit Finance of the Defense of Democracies Foundation that, after analyzing bitcoin transactions made between 2013 and 2016, revealed that only 0.61% of trading transactions in the period were associated with illegal activities. The Chief Scientist refers center’s findings that illegitimate transactions within the bitcoin economy are extremely centralized, further undermining the offer that illicit activities pervade the bitcoin economy. Said research indicated that less than 10% of anonymous free markets were responsible for 95% of illegal transactions towards bitcoin between 2013 and 2016.