Wall Street Sees Bitcoin Legacy as Payment System

[Lusitanian Trader]

Wall Street Sees Bitcoin Legacy as Payment System: Currencies


Blog - Bull And Bear Markets




While a Texas Senate candidate is accepting Bitcoin campaign donations, and Overstock.com customers can use the technology to buy engagement rings, Wall Street sees its future more as a payment system than a currency.

Either way, it’s been a profitable investment. Created in 2008, Bitcoin’s value took off last year, leaping about 60-fold in the past 12 months to $936.51 yesterday, with prices ranging from $16 to more than $1,200, according to bitcoincharts.com. Gold plunged 26 percent in the same period, while the second best-performing major currency, the 18-nation euro, climbed 7 percent versus a basket of its major peers.

[aminorex]

It's a floor wax.  It's a desert topping.

[Walsoraj]

Please watch the Wolf of Wall Street.

Bitcoin and alts are all pink sheet penny stocks. Wall Street's increasing attraction to bitcoin should frighten, not excite.

[BitcoinAshley]

It's a floor wax.  It's a desert topping.

It could be all of those things, and more!

[Bitcopia]

Please watch the Wolf of Wall Street.

Bitcoin and alts are all pink sheet penny stocks. Wall Street's increasing attraction to bitcoin should frighten, not excite.

The average market cap. of pink sheet stocks is roughly $180,000,000. Bitcoin is roughly $10,000,000,000 or about 55X the average pink sheet stock. That means 55X the capital required to manipulate it.

Pink sheet stocks often represent companies with 0 track record of any success. Bitcoin is proving quite useful. How many pink sheet companies do you think are used by millions of people?

Pink sheet stocks are commonly pumped and dumped by the issuing company, not the holders. Bitcoin operates by an incorruptible and publicly audited set of business rules, and could not pump and dump itself if it wanted to.

Every day that passes, Bitcoin separates itself further and further from being anything comparable to a pink sheet stock.

That being said, I'm not sure how I feel about Wall Street getting involved. I don't think heavy speculation is the best thing for bitcoin, but I think it will be ok. The USD makes up 43.5% of the $5.3 TRILLION DAILY ForEx volume, and it's doing just fine.

[Impaler]

The so-called 'market cap' of BTC is meaningless because so many coins are either hoarded or lost, the market value of BTC is the total sum of dollars on the exchanges that are bidding for BTC, and that's in the penny stock range (40 mill on Gox, unknown but presumably comparable on other sights).

[bassclef]

Bitcoin operates by an incorruptible and publicly audited set of business rules, and could not pump and dump itself if it wanted to.

Bolded for emphasis. This is precisely the reason Wall Street and institutional adoption will be interesting, and not necessarily a bad thing. Finally we can see them as individuals and not suits who use their power and influence to game the markets then run crying to their friends in Congress or the SEC when things don't go their way. It will make them think twice before using their resources to manipulate the market, as Uncle Sugar won't be there to bail them out this time.

[Bitcopia]

The so-called 'market cap' of BTC is meaningless because so many coins are either hoarded or lost, the market value of BTC is the total sum of dollars on the exchanges that are bidding for BTC, and that's in the penny stock range (40 mill on Gox, unknown but presumably comparable on other sights).

Is there a roughly $100MM bid depth for the average penny stock? I can't answer with certainty, but a $100MM bid depth on a $180MM market cap seems highly improbable.

Regardless, comparing Bitcoin to a pink sheet stock is incredibly short-sighted.

[windjc]

The so-called 'market cap' of BTC is meaningless because so many coins are either hoarded or lost, the market value of BTC is the total sum of dollars on the exchanges that are bidding for BTC, and that's in the penny stock range (40 mill on Gox, unknown but presumably comparable on other sights).

Is there a roughly $100MM bid depth for the average penny stock? I can't answer with certainty, but a $100MM bid depth on a $180MM market cap seems highly improbable.

Regardless, comparing Bitcoin to a pink sheet stock is incredibly short-sighted.

Lol. No. Penny stocks typically have very shallow bid depth and even shallower in terms of $$$.

These people saying bitcoin is like a penny stock don't ignorant.

Bitcoin is more like a small cap.

[alexeft]

The so-called 'market cap' of BTC is meaningless because so many coins are either hoarded or lost, the market value of BTC is the total sum of dollars on the exchanges that are bidding for BTC, and that's in the penny stock range (40 mill on Gox, unknown but presumably comparable on other sights).

Why do I always find you around here then? You have stated that you don't like bitcoin.
Go to freicoin and have your demurrage!