Bitcoin Is Not a Threat to Financial Systems, Says US Chief Financial Regulator
100% agree with what Financial Stability Oversight Board has written.
300-400K transaction/day are not more than 0,1-0,2% of all transactions made in the world.
And 600 Billion $ market cap is nothing if compared with all financial economy. More info and comparisons here:
http://money.visualcapitalist.com/worlds-money-markets-one-visualization-2017/
Still really, really small!
“Virtual currencies are only used by a very small number of consumers. We give a bit more credit to the potentially much broader applications of the so-called distributed ledger technology underpinning the innovations. It is noteworthy that this digital wave also presents a regulatory challenge, because the storage of data is decentralized, rather than being in one spot that governments can watch.”
they are scared to death . small number of consumers is growing everyday . funny elite , loosing money everyday .
Disagree. Personally I don't think that traditional system and banks are feeling so threatened by cryptos. For a lot of reasons:
Because crypto tecnology is very interesting for banks too (the most evident example is Ripple, but also bankera and other similar project present very interesting business models) and also for governments (see for example the incoming crypto-ruble).
Because crypto market is easily manipulated (not only with futures - 25 billion $ of daily volume wouldn't be so difficult to overpower for a group of great investors like Golmand Sachs and friends).
Because crypto aren't enought developed to substitute traditional money - traditional sistem handles hundreds of milions of transaction/day, bitcoin is near to 400.000 and its is already near to colapse point. Other cryptos, more efficient, are still smaller in terms of market and acceptation.
Because returns in crypto-sector are the paradise of greed and speculation, and greed and speculation are the core business of traditional system and banks.
If governments were so scaried by crypto, they could act exactly as China and kill the crypto economy banning all exchange-market in any moment. But they aren't doing. I am Italian and I was expecting European Central bank to strongly and fast react to all this, but at a public level nothing of this has still happened. For the moment, crypto sector is young and they are probably sill evaluating situation.
But, we need to continue one step at a time. Let's see what happens with futures..
Whether or not they should be scared--they are not scared. It is the "hype" behind many individuals getting involved that has spiked the market cap in the last few months. The key word there being Individuals. Many corporations and institutions are not yet involved--but they are looking and interested. This "mania" that has taken the crypto market by storm the last few months is fueled by a lot of people that don't know much about crypto--they just see the massive returns and assume that crypto is "guaranteed gains"--it is nothing of the sort and when a big dip happens, many of these new-comers will experience it for the first time and mistake it for a crash. A massive pull-out from new buyers could possibly trigger a crash. The big institutions, power groups, and governments do not take us individuals seriously, and I don't blame them at this point. One step at a time though, if enough smart investors remain true to the course, crypto will begin to command the attention of big banks and governments. Not yet though.