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Goldman Sachs to Open a Bitcoin Trading Operation (nytimes.com)
Even as most big banks have maintained distance from virtual currency Bitcoin, Goldman Sachs is bucking the risks: It plans to set up what appears to be the first Bitcoin trading operation at a Wall Street bank. From a report: In a step that is likely to lend legitimacy to virtual currencies -- and create new concerns for Goldman -- the bank is about to begin using its own money to trade with clients in a variety of contracts linked to the price of Bitcoin. While Goldman will not initially be buying and selling actual Bitcoins, a team at the bank is looking at going in that direction if it can get regulatory approval and figure out how to deal with the additional risks associated with holding the virtual currency. Rana Yared, one of the Goldman executives overseeing the creation of the trading operation, said the bank was cleareyed about what it was getting itself into. "I would not describe myself as a true believer who wakes up thinking Bitcoin will take over the world," Ms. Yared said. "For almost every person involved, there has been personal skepticism brought to the table."
First thought: here come the Bitcoin flash traders.
is what I'm guessing this will turn into. The question is how long can they get away with it. I know in Europe banking laws are written so you can't set up a banking structure that lets you launder money and pretend you didn't know that was happening. With the US it comes down to enforcement and regulatory oversight, both of which are lax right now.
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RIP Michael Hastings. While the MSM was distracting the populace with "gay rights," the CIA was assassinating real journalists like Michael Hastings.
One of many reasons that I don't own a drive by wire car.
There's only a limited number of these logical constructs. IMO they're (cryptos) are very similar to non-voting, non-dividend-paying shares of a company. Not much you can really do other than trade them (Google's class-c's are over a grand a piece now). There's the ledger to which all transactions propagate, like a secure Usenet. Kinda limits its use as a true currency when some rando on the left coast gets his ledger updated when I make a transaction on the other side of the country.
Aren't those guys supposed to be in jail for something?
translation: they'll sell managed products that they can't lose on to gumbies, then when the market cap gets super low they'll think about buying actual bitcoins but they won't, because the reason the price has gone so low will be due to regulatory intervention in the space meaning there will be no more moon.
If anyone can spot an opportunity to bilk marks out of their dollars while feathering their own nests (https://www.amazon.com/Where-Are-Customers-Yachts-Street/dp/0471770892), it would - yes! - be that "vampire squid" epitomized by GS.
Now that Goldman Sachs is involved, surely nothing can go wrong. They're reputation is impeccable.
You are welcome on my lawn.
This is really going to end well. How about Great Recession II, Even Worse?
See subject.
L'Idiot
Bitcoin derivatives by Gold Mansacks. What could go wrong?
Goldman Sachs would trade in dog turds if they thought it would make them money or they thought they could launder or cheat others with it. Them being involved adds precisely NOTHING to crypto coins legitimacy
Is anyone surprised?
GS opening a trading operation is no different than a gamble house taking bets on a new ball game. They can engineer it so they themselves take no position at all, i.e. they take a skim of the transactions regardless of who won/lost.
This is no different than accepting bets on the result of a ball game, it is by no means endorsing the game itself, it only indicates there may be enough people interested in placing bets.
HOWEVER, as the betting pool gets larger, there is always the problem of the gamblers trying to change the result of the game, legally or illegally, so they win. Very soon there will be market manipulation of whatever coins the bets are on, then you will see how the wolves from the Wall Street take all the money from the bit players.
Goldman Sachs or the big finance industry in general will do the very opposite of lending legitimacy. It is like suggesting that Russian oversight lends legitimacy to a democratic election...
I'll see your Constitution and raise you a Queen.
When mainstream media reports about it.
How do you know a financial trend is over?
When Goldman Sachs et al get involved in it.
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
First "Get Ready For Most Cryptocurrencies to Hit Zero, Goldman Says," then "Goldman Sachs CEO Lloyd Blankfein told Bloomberg that the currency serves as "a vehicle for perpetrating fraud."", and now they want to open their own.
Right.
Someone better tell him to switch over to BCH quick or this is going to end poorly for him.
Inaccurate headlines are fun! There are already at least a handful of large trading firms working in BTC and other cryptocurrencies, doing basic arbitrage among other things. This activity is necessary if the currencies are going to actually encroach on more traditional currencies, by providing market efficiency. I suppose one could argue that technically GS is the first "Wall Street bank", except they aren't trading BTC, they are offering futures contracts. Someone else will hold the BTC.
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It's now confirmed that Bitcoin is a scam...
Dogecoin to the moon*!
* the moon equals 10 dollars.
#DeleteFacebook
I mean, it's gonna fail anyways, but now we'll pay for it.
It should be "Goldman Sachs to Open a Bitcoin Gambling Operation"
Are (any) fiat-currency and (any) cryptocurrency really equivalent, as cryptocurrency fans claim?
For example, US Dollar and Bitcoin are really equals?
Value/validity/authorization of US dollar is provided/guaranteed by US Government (and in-turn whole US Public)!
Also, not to mention, US Dollars in any US Bank is insured by US Government!
What authorization/guarantee/insurance is behind Bitcoin? Nothing!
Sorry but that is the end of discussion then!
Why do you think Satoshi Nakamoto is really hiding his identity, if Bitcoin is really such a great innovation?
He is just someone does not like media/fan attention?
Or, could it be really because Bitcoin (and all cryptocurrencies followed it) are actually Ponzi Schemes?
(So he knew very well that law enforcement would come after him sooner or later?!)
If so-called cryptocurrencies are really good innovation, why they attract so many criminals/criminal activity?
Could it really be because, all cryptocurrencies themselves are scams, and that is why they attract all kinds of criminals/criminal activity?
If so-called cryptocurrencies are really currency, why no company/store can use Bitcoin as currency anymore?
Because the price of Bitcoin proved to be extremely unstable to use as a currency?
Would the result be different, if Bitcoin replaced by any other "cryptocurrency"?
Aren't all work the same way?
If so-called cryptocurrencies are really money; isn't people issuing their own money, illegal already, in all countries?
If so then, why they are still not banned in all countries?
Or, they are not actually virtual currency but virtual investment?
But, if they are actually investment, why we need/want them?
What would happen to world economy, if people invested in virtual investments, instead of real investments?
Or, all so-called cryptocurrencies are actually just a modified (made decentralized and paying variable interest) Ponzi Schemes?
(Price of cryptocurrencies would keep increasing in the long term (by their design), so it is equivalent of paying variable interest to all long term investors.)
As more and more people invest in cryptocurrencies, it will become harder and harder to ban their trading everywhere!
All cryptocurrencies need to be banned globally before it is too late!