BitGo Goldman Crypto Custody and Fidelity Launch

[Pab]

Very interesting interview with BitGo’s CEO Mike hi
He is sharing his thoughts about BitGo development , coming Goldman crypto custody and Fidelity trial launch
It is very bullish all together

After reading all of that i see that crypto technology is rapidly transforming in to incredible industry supported by biggest player


“[Goldman] would be tremendous for the industry,” Belshe says. “They’d bring five or ten billion into custody in just a few months, just by being Goldman. And then that could cause the price [of Bitcoin] to spike, and it could spike on its own by a factor of ten…I’d love to have them in the space.”


The same goes for Fidelity, whose much-awaited crypto business recently soft-launched with a few clients. Currently, the firm is just offering bitcoin custody.


“I would bet money that they just put the brakes on and say we’re going to see how this goes for three to six months. They don’t want to take a hundred-billion-dollar risk on brand new tech.”

https://www.theblockcrypto.com/2019/03/07/heres-what-bitgos-ceo-expects-of-goldman-sachs-and-fidelitys-crypto-custody-plans/

He notes that Goldman Sachs considered white labeling BitGo’s product, pursuing a pilot schem

BitGo wants to build a ‘virtual order book’ to radically transform crypto’s market structure

BitGo, the crypto custodian, announced a partnership earlier this year that would allow clients to trade without moving coins out of cold storage
The firm is looking to expand that platform to create a global pool of liquidity, connecting possibly dozens of exchanges


https://www.theblockcrypto.com/2019/03/05/bitgo-wants-to-build-a-virtual-order-book-to-radically-transform-cryptos-market-structure/

[davis196]

Waiting for Goldman Sachs to bring the new hype and the fresh billions of dollars into the crypto industry is totally wrong.GS won't support any crypto project,unless it will benefit them by increasing their control over the crypto market and squeezing lots of money from the naive crypto noobs.

[magneto]

All very interesting news, but honestly this is a lot like the ETF that was hyped up initially.

They are going to be serving institutions, and it's very unlikely that these institutions will be able to pass down any of the benefits of them entering the market down to the individuals that are using the bitcoin network. It might cause a short term rally in the market once Goldman enters the market or whatnot, but beyond that, there isn't really any tangible benefits to the network per se.

But this bear market has certainly seen a lot of these financial institutions, Goldman, NYSE, etc. all have expressed interest. The question is really a matter of time at this stage. Could there be a surge in market activity after these industry big names enter? Absolutely. I just doubt that this surge will be sustainable, that's all.

[ecnalubma]

We have witnessed that similar bullish news before but seems the effect on the market is very slight and temporary. I think there's a small chance that these could be the catalyst for a massive price surge, but lets hope this can change everything in crypto space and not only the interest of the few.

[shinharu10282016]

Waiting for Goldman Sachs to bring the new hype and the fresh billions of dollars into the crypto industry is totally wrong.GS won't support any crypto project,unless it will benefit them by increasing their control over the crypto market and squeezing lots of money from the naive crypto noobs.

That's what clearly happened in 2017 and then some people really made some good money from it and then voila. Easy profit especially for the old ones and the new ones getting nothing but losses.

That's one good memory from that year really.

[Kevin77]

You can find the small details in there that makes it so obvious. First of all of course big huge corporations putting money bitcoin is a no joke, it could affect more than it puts, just putting in couple billion dollars with their name on it makes it go way more than just that couple billion dollars. So I definitely agree and it is definitely a thing of importance to all of us.

Nonetheless, considering bitcoin should be a decentralized products, all this "lets hope goldman helps" "I bet sec would make it skyrocket" type of dependency is not a good thing for us. Aside from that bitgo is basically hoping they would be in favor with these huge companies and get a share of the wealth, that is the reason why they are sucking up to them, if I could partner with goldman on ANYTHING I would be loving them too.

[buwaytress]

Yeah, this is all just another "crypto for the sake of crypto" and "blockchain for the sake of blockchain".

Don't get me wrong, I do agree this is all very bullish news, but I get the feeling even the most optimistic of speculators have wisened up by now to all this Wall Street noice. It's been well over a year now of ETF cockteasing and courting institutional money... I have always said that big money already flowed in (why else the last ATH run?) and those money bags aren't waiting around for news, they're in or they're not.

This is also serving up as distracting news too, since the actual economies and markets these guys make money from aren't doing well and headed for another crash. They got to take the minds of investors elsewhere.

[Ucy]

Why would people patronize the water companies when there is natural spring and clean Bitcoin everywhere to drink? I guess because people love easy and fancy stuff.  Why not just build and connect your own fancy pipes/taps from the natural blockchain to your homes?

[deisik]

All very interesting news, but honestly this is a lot like the ETF that was hyped up initially.

They are going to be serving institutions, and it's very unlikely that these institutions will be able to pass down any of the benefits of them entering the market down to the individuals that are using the bitcoin network. It might cause a short term rally in the market once Goldman enters the market or whatnot, but beyond that, there isn't really any tangible benefits to the network per se.

But this bear market has certainly seen a lot of these financial institutions, Goldman, NYSE, etc. all have expressed interest. The question is really a matter of time at this stage. Could there be a surge in market activity after these industry big names enter? Absolutely. I just doubt that this surge will be sustainable, that's all.

I agree and at the same time disagree with your standpoint

I agree that it may all turn out to be hot air only in the end as it doesn't seem to add to Bitcoin's real life adoption directly (either as a means of payment or value transfer device) and through the latter to its real value. On the other hand (this is where I disagree), the involvement and participation of big guns in Bitcoin may still trigger a positive feedback loop which could contribute to that use and ultimately lead to Bitcoin's real value rising

Anyway, these recent developments are definitely worth to keep an eye out for, especially if they (I mean, BitGo) actually live up to their promise to allow clients to trade Bitcoin without moving coins out of cold storage. I guess that would pretty much count as a decentralized exchange, at least as much as ownership of the keys is concerned (but that's the most important thing if you ask me)

[dothebeats]

This is just the Wall Street's plan of enticing the investors once more that crypto is alive again, and no actual development or progress will have been accomplished once it's out in the open. I'm in for new technology that greatly helps crypto and the economy as a whole, but if this is just another hype train waiting to get crashed on its tracks (similar to what happened to ETFs and other promising projects pre-bitcoin ATH 2017), then count me out. Not really a pessimist but I sense that this is all gimmick and not really development for crypto per se.

[1Referee]

Not really a pessimist but I sense that this is all gimmick and not really development for crypto per se.

It's hard to please Bitcoiners, that's for sure. 

All these products we see legacy institutions come up with aren't meant to please the people here, but those who actually wait for something like this to pop up. Nocoiners basically. We don't want to deal with any of these institutions, but that's different for nocoiners looking to buy exposure into Bitcoin one way or another.

The futures that CBOE and CME offer are the perfect example of that. Last month the CME traded almost 90,000BTC paper Bitcoin in one single day. The demand is there, it just looks for a way to enter in a more long term viable way, which these futures don't really provide. It's too much of a product that fits in a casino in my opinion.

In the end, whether we like it or not, every entity can and very likely will enter this space. It's impossible to stop them.

[hugeblack]

“I would bet money that they just put the brakes on and say we’re going to see how this goes for three to six months. They don’t want to take a hundred-billion-dollar risk on brand new tech.”

I think Bitcoin has gone beyond the influence of companies joining, the effect that really changes the price. It depends on big whales in the market and countries.
I do not see that the introduction of billions of dollars will affect* the market daily trading more.* Focus on institutional will not make any difference.

[LeGaulois]

Ok for the fact that it could bring billion to the market, but am I the only one to think it could also kill the Bitcoin adoption?
I mean, this will confirm its investment status (as digital gold) and not an alternative currency. It will so never be used as a currency by the mass and will only be considered as a digital investment.

[Harlot]

If Goldman Sachs is the only reason for the pump then they'll probably be the reason for it to go down as well. They know that when the time is up and they already want to milk the market they can do it at any time they want. And they won't care about the thousands who will lose money in the process. Yes their money will be a huge boost to pump the market but with the amount of what they are holding they can always topple us down without them even trying their best.