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The New York Stock Exchange Teases Plan To Launch Cryptocurrency Trading (thenextweb.com)

Posted by ryuzaki0 on from the it's-coming dept.

Wall Street's interest in integrating cryptocurrencies with their business seems to be on the rise. From a report: Intercontinental Exchange (ICE) -- the parent company of the world's largest stock exchange desk, the New York Stock Exchange (NYSE) -- is working on a Bitcoin exchange for large investors, The New York Times reports. ICE is also reportedly planning to set up swap contracts with other financial institutions, which will allow customers to own Bitcoin without an immediate trade with the backing and security of the exchange. The move follows an earlier interest in cryptocurrency trading by Nasdaq and Goldman Sachs.

42 of 68 comments (clear)

  1. So much for crypto by Train0987 · · Score: 1, Insightful

    Once Wall Street gets involved with crypto trading that'll be the end of its decentralization. It will be easily manipulated for the benefit of the banksters. Derivatives and ETF's will be introduced that have the effect of printing new crypto that only exists on paper and there will be no more gains to be had for the average person.

    1. Re:So much for crypto by jellomizer · · Score: 2

      Unfortunately, due to its volatility, cryptocurrencies cannot be handled like money for the common man. Because you get cases where people would buy a pizza that would be worth more then the budget of a small nation a few years later.

      --
      If something is so important that you feel the need to post it on the internet... It probably isn't that important.
    2. Re: So much for crypto by reanjr · · Score: 1

      That's how money is handled too. If human beings didn't discount long term rewards, we would have likely gone extinct. Immediate benefits have the distinction of being fulfilled without risk. Future benefits can always evaporate overnight if you die.

    3. Re: So much for crypto by jellomizer · · Score: 1

      However the difference between a $20.00 Pizza being worth $40.00 in a couple of years if you had saved the money. Vs the $20.00 Pizza being worth $200 Million in a few years. I can live with myself If I knew I lost $20.00 due to an immediate purchase. But If I lost $200 million I would be kicking myself for the rest of my life.
      The first may be a minor inconvenience the former would had been a major life changing event

      --
      If something is so important that you feel the need to post it on the internet... It probably isn't that important.
    4. Re:So much for crypto by Joce640k · · Score: 3, Insightful

      there will be no more gains to be had for the average person.

      Bitcon's gains ran out months ago. I can't see any "large investors" buying bitcoin these days.

      It will be easily manipulated for the benefit of the banksters.

      It's already easily manipulated by the handful of Chinese miners who have a large percentage of the coins.

      Just look at the Bitcoin price history; it goes up in stairsteps, completely unlike any normal stick price. Up, up, up in small volumes then sudden high volume trading and crash. Very obvious that people are pumping and dumping.

      The only reason Bitcoin is hanging on is because of all the shysters advertising it to the marks. Now Wall Street wants some of that action? It may be too late. As soon as pumping/dumping stops working for the Chinese they'll just cash in and retire (if they've got any sense). That moment will be the end of Bitcoin.

      --
      No sig today...
    5. Re:So much for crypto by Sir+Holo · · Score: 3, Insightful

      As soon as pumping/dumping stops working for the Chinese they'll just cash in and retire (if they've got any sense). That moment will be the end of Bitcoin.

      The end of Bitcoin would be brought about by the cost to verify a transaction came to exceed transactions.

    6. Re: So much for crypto by Train0987 · · Score: 1

      Not if you're the pizza seller and the $20 in bitcoin you accepted last night can only be redeemed for $10 today.

    7. Re:So much for crypto by Train0987 · · Score: 1

      My point is that once Wall Street and their paper crypto get involved it will only decrease in value (unless they want it to increase). In other words they will control the market if they're allowed to print paper crypto.

      Look what has happened to the metals markets after they began printing paper metals by trading derivatives/etfs. They artificially control the supply/demand curve without mining anything.

    8. Re:So much for crypto by Train0987 · · Score: 1

      Bitcoin is hanging on because of the fraud that Tether is. Once Tether implodes look out below.

    9. Re:So much for crypto by jythie · · Score: 1

      We are already past the point of cryptocurrency having any gain for the average person. It has mostly moved over to amateurs attempting to transition to being a new generation of bankers and true believers underwriting their rise.

    10. Re:So much for crypto by religionofpeas · · Score: 1

      Difference is that Bitcoin is easy to trade around the world, whereas shipping serious amounts of precious metals is a bitch. If the paper value deviates too much from the real value, it will be easy enough to arbitrage.

    11. Re:So much for crypto by Comrade+Ogilvy · · Score: 1

      It is not just the direct costs but also the opportunity costs. As blockchain technologies expand and mature, Bitcoin will have to compete with every other thing someone is willing to pay for that involves blockchain. Bitcoin has a big head start, but there are many reasons to suspect that Bitcoin will lose the marathon.

    12. Re: So much for crypto by Comrade+Ogilvy · · Score: 2

      Not sure what you mean. High volatility undermines the practical value of any and all currencies. I can easily accept a modest amount of inflation ordeflation if the long term trend are highly predictable.

      You have to be very rich and privileged to like volatility. Normal people cannot afford to be in even medium term agreements with things like Bitcoin. If I am in a year long contract and Bitcoin drops by a factor of 2, I am screwed. If I am in a year long contract and Bitcoin jumps up by a factor of 2, I would be terrified that the business I am working with will go bankrupt. It is too often a lose-lose game.

    13. Re: So much for crypto by Train0987 · · Score: 1

      Uh-huh. Because perfectly timing the market on a daily basis is soooo easy, everyone can do it.

      Said the con-artist.

    14. Re: So much for crypto by Train0987 · · Score: 1

      Crypto values are too volatile to be useful as any kind of investment vehicle. No true investor will tolerate 20-30% weekly swings. Gamblers trying to get rich quick, on the other hand...

    15. Re:So much for crypto by Train0987 · · Score: 1

      Once wall street gets involved the paper value WILL BE the real value.

    16. Re: So much for crypto by religionofpeas · · Score: 1

      No true investor will tolerate 20-30% weekly swings. Gamblers trying to get rich quick, on the other hand...

      If both gamblers and true investors walk away, volatility will automatically slow down.

    17. Re:So much for crypto by religionofpeas · · Score: 1

      Once wall street gets involved the paper value WILL BE the real value.

      Nope. Most bitcoins are being held by people who got in early, and couldn't care less about wall street.

    18. Re: So much for crypto by MrL0G1C · · Score: 1

      True investor in a currency = oxymoron.

      --
      Waterfox - a Firefox fork with legacy extension support, security updates and better privacy by default.
    19. Re:So much for crypto by Joce640k · · Score: 1

      So? They won't be buying any coins so they don't set the price.

      (They can only make the price go down by increasing the supply)

      --
      No sig today...
    20. Re:So much for crypto by ayesnymous · · Score: 1

      Ever since Bitcoin futures trading started a few months ago, Bitcoin trading has changed. It seems to be a lot less volatile than it was before.

    21. Re: So much for crypto by reanjr · · Score: 1

      Not quite true. While almost all currency trading is speculative, you can invest in currency based on future monetary policy and trade. It's not very lucrative, but it can be done.

    22. Re: So much for crypto by reanjr · · Score: 1

      In America, BTC isn't a currency, though. Unfortunately. Taxes are a nightmare when you try to use a "collectible" (U.S. government's classification, essentially) like you would use a currency.

    23. Re: So much for crypto by reanjr · · Score: 1

      "Rich and privileged" is relative. If you have enough to save and invest for retirement, you are rich and privileged enough to handle high volatility (unless you're near retirement). Most people don't have the balls to take advantage of high volatility without a very large cushion, but they have difficulty building those cushions because they avoid the high yields.

  2. Parasites by rsilvergun · · Score: 1

    I'm I the only one who thinks something's off that we're spending all this electricity to make virtual currencies used mostly to purchase drugs (and mostly because drugs are heavily criminalized) and money launders? And now we've got this pack of hyenas best known for the bloodsucking that is High Frequency Trading entering the fray.

    You're not even going to get to use Bitcoin to get away from fiat currencies. As predicted if it every got big enough to matter the established players would step in and take control. All we're left with is a rising electric bills. After all, supply and demand means if the bitcoin miners are using more supply there's more demand and prices go up.

    --
    Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
    1. Re:Parasites by OrangeTide · · Score: 1

      Why print paper money when it could be used for something useful like toilet paper?

      Why mint coins when you could be building industry with the wasted metal?

      Here's the thing about a free market. There is no guarantee that resources will be allocated to the most practical long term goods. Because of the way the system works we normally see lots of short term decisions based on what is valuable and not what is practical.

      --
      “Common sense is not so common.” — Voltaire
  3. The Cause of the Next Depression by Zorro · · Score: 1

    Cryptocurrency trading.

    Whoever thought it up will in the end destroy millions of lives.

    1. Re:The Cause of the Next Depression by DaMattster · · Score: 1

      Cryptocurrency trading.

      Whoever thought it up will in the end destroy millions of lives.

      This is the law of unintended consequences. The people that came up with the idea of cryptocurrency never intended for it to be used like this. It was intended to be an end run around the banking system and governments hell bent on control and surveillance.

  4. What could possibly go wrong? by DaMattster · · Score: 1

    As the subject reads ... what could possibly go wrong here? Sarcasm should be heavily inferred.

  5. Re: Don't we already have crypto currency... by DaMattster · · Score: 2

    That system is based on trust between parties. This leads to large inefficiencies, long clearing times, and expensive transfers. Crypto solves many of the problems of banking and remittance in a better way than the existing system.

    But it creates as many problems as it solves. For example, if your Bitcoin is stolen, you have little or no recourse. You have to trust that your Bitcoin wallet is secure and software these days is generally riddled with exploits and vulnerabilities.

  6. Really? How is charging me... by Anonymous Coward · · Score: 1

    ...a $40 transaction fee to buy a stick of gum "solving inefgiciencies?"

  7. Re:In other news.... by Train0987 · · Score: 1

    Yep. Time for a Trump is a Russian Spy! story or something about climate change killing us all.

  8. Re:In other news.... by bn-7bc · · Score: 1

    Well if you ar talking about this thread in particular, I suspect people are getting Crypto Currency Fatigue.

  9. How do you know an IT trend is over? by Opportunist · · Score: 3, Insightful

    First sign: Mainstream media report about it.
    Second sign: Non-techs start getting interested.
    Final nail in the coffin: The NYSE trades in it.

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    1. Re: How do you know an IT trend is over? by Bing+Tsher+E · · Score: 1

      WTF is an 'IT trend' and why would nerds care what the IT pukes are up to?

      IT is run by the finance department, for pete's sake. The fucking accountants.

      Isn't there a toner cartrige you should be changing somewhere, IT boy?

    2. Re: How do you know an IT trend is over? by Opportunist · · Score: 1

      Said the person whose job could be done more cheaply by the average magic-8-ball

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  10. Misleading Title by orlanz · · Score: 1

    Are there any other kind of titles with crypto involved?

    The NYSE is doing no such thing. Not even close. The company that holds a lot of global Exchanges, Clearinghouses, and Trading houses... ONE of which is the NYSE is thinking of opening a new exchange that will trade in crypto currencies or securities & vehicles with such high exposure.

    The ONLY link to the NYSE, which is a heavily regulated market, is that the sibling link may lend credibility to the new offspring. And if the crypto market gets new rules or classification that activate regulations, then the current Exchanges might just jump in and this independent Exchange will die off, having no purpose.

    Its just a what if piece to drum up speculation & rumors.

    1. Re:Misleading Title by w1z7ard · · Score: 1

      NYSE owns a large share of coinbase already, actually.

      --

      "Recursive bipartite matching"- try it!

    2. Re:Misleading Title by orlanz · · Score: 1

      NYSE owns a minority share. And they primarily do so to obtain transparency into the price of BTC and similar crypto currencies. They don't own enough to appear to have a majority or controlling share. This is to prevent some securities & exchange regulation requirements leaking into Coinbase.

  11. Turds by Topwiz · · Score: 3, Funny

    Charlie Munger of Berkshire Hathaway: “And I think the people who are professional traders that go into trading cryptocurrencies, it’s just disgusting. It’s like somebody else is trading turds and you decide, ‘I can’t be left out.'”

  12. Question by bogie · · Score: 1

    You think it's not being heavily manipulated now?

    --
    If you wanna get rich, you know that payback is a bitch
  13. Re: Good, hopefully cryptocurrency dies quickly. by Bing+Tsher+E · · Score: 1

    Just college students, and it's just their beer money. They will get more student loan money next quarter.