26-12-2017, 11:08 AM
(26-12-2017, 09:50 AM)BlueKelah Wrote: yup well said...
Blockchain just another "software platform" for electronic transactions. Banks already have their own platforms for transactions. Whether or not they want to use Blockchain will be a cost and efficiency equation. It is just another platform.
I am actually quite surprised they allowed futures trading in Bitcoin. But then again, the Americans are still allowing a resurgence in the synthetic CDO market that was responsible for the last GFC so go figure....
Wall Street goes to where there is money to be made - That is the default behavior, so where is the surprise? What is the best way to profit from insiders who are looking to cash out, and outsiders who are eager to go in? Ans: Become the middle man where you win (whether it is heads or tails)
The investment banks also first started out as the middle-men for synthetic CDO markets, but eventually the temptation to hold the actual product became too much with accelerating profits from these packaged products booming with the housing boom. How this will evolve is anyone's guess.