Bill Gates Wants To Short Bitcoin

Bill Gates: I would short bitcoin if I could

What's the story?

Bill Gates would short BTC if he could. He believes BTC is an asset class that isn't producing anything and is greater fool's theory. However, he thinks blockchain is an impressive technology.

Why Does This Matter?

I feel like we hear the same criticism all the time. Bitcoin is terrible, but blockchain is interesting. First off, it's straightforward to short BTC. You can short it via futures on CBOE and CME. Bill Gates runs one of the most sophisticated family offices in the world; I think he could short futures if he believed it would be a winning trade. In the past, Bill Gates has been bullish on Bitcoin. In October 2014 he said, "Bitcoin is better than currency in that you don’t have to be physically in the same place and, of course, for large transactions, currency can get pretty inconvenient." For someone who seemed bullish on BTC, I wonder what changed. 

Bitcoin Sees Wall Street Warm to Trading Virtual Currency

What's the story?

Last week Goldman Sachs announced a Bitcoin trading desk. This week, ICE is planning on setting up an operation where financial institutions can buy Bitcoin swap contracts. However, some cryptocurrency enthusiasts are opposed to working with large financial institutions. Paul Chou of LedgerX writes, “The reason we got into crypto was not to partner with a bank, but to replace them,”. What everyone can agree on is that financial institutions are becoming more and more interested in Bitcoin.

Why Does This Matter?

Every day we hear institutional capital is going to enter the space, but never see concrete evidence. Initiatives such as ICE's planned exchange will be another entry path for large financial institutions to enter the space. ICE is a trusted name that a bank such as Morgan Stanley will feel comfortable buying financial products from. I understand Paul Chou's comments. He wants to protect his brand by acting as a little guy, but let's be honest. If Bitcoin or any cryptocurrency is going to reach scale, you need banks. Banks, both directly and indirectly, have a significant influence on where capital is allocated in financial markets. In order for the cryptocurrency markets to grow, we need institutional capital and support. 

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