Multinational Bank Sees Positive Future For BTC
The multinational investment bank and financial services company, Morgan Stanley has published their latest report which was released on 31st October. The report contains an overview of the evolution of Bitcoin and how its investment purpose has changed throughout the years but the report has a bullish sentiment to it in comparison the outlook for 2017. Also in the report is a few drawbacks of the crypto including a lack of regulations and energy.
To start with, the banking giant has recently begun to offer trading derivatives that are tied to Bitcoin. The company started offering Bitcoin swap trading tied to future contracts. Earlier in the year, James Gorman (CEO) said that a trading desk specialising in derivatives tied to virtual assets could be a potential service offered to clients.
As said by Crypto Ticker, Morgan Stanley was reported comparing Bitcoin to Nasdaq to clients, even though it moves almost fifteen times quicker. The bank also predicted that in the future, financial markets would start to increase their adoption for crypto over the years saying:
“Over the coming years, we think that the market focus could turn increasingly toward cross trades between cryptocurrencies/tokens, which would transact via distributed ledgers only and not via the banking system.”
Trend of stablecoins
The stablecoin trend began in the late months of last year with multiple giants in the industry launching stablecoins of their own experiencing a burst during the summer. Stablecoins are digital currencies which the whole purpose is to minimise the minimise the volatility of price fluctuation and they are usually backed by either fiat currencies like, gold, commodities and the US dollar or other digital assets.
In the report, it also mentioned how the introduction of stablecoins in the crypto market resulted in Bitcoin trading volumes taking a proportional hit despite Bitcoin making up over 50 percent of total market valuation. Experts believe that this added the subsequent fall in prices that resulted in the current bear market.
The highlight of the report is when it calls crypto’s “rapidly morphing thesis”. Tracing Bitcoin’s evolution from different roles of virtual cash, a new fundraising mechanism, a method for the store of value to its current form of a new institutional investment class
What are your thoughts? Where do you see Bitcoin going in the future? Let us know what you think down below in the comments!
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