Bitcoin has now passed the point where any government can seriously think of banning it because the phenomena is becoming part of the ‘real’ economy.
PayPal is the latest publicly traded company to have some of its fortune tied to bitcoin. An analyst just recently suggested $1 billion in revenue may be added to the company due to offering bitcoin services.
That is serious money, so reflecting on their stock price and considerably recently, with Square being another company that not only offers bitcoin services, but holds some of it as part of their treasury reserves.
In the financial industry, bitcoin is nearing a tipping point. Smart money, whether it likes it or not, simply can not ignore the conclusion of study after study that bitcoin is beneficial to your portfolio, with one such study coming out just this week.
We’re therefore seeing a curious phenomena where the likes of traditional influencers, like JP Morgan or other banker analysts, are being ignored with market participants giving more weight to hard data.
Hence a number of hedge funds and/or investment managers have taken a bet on bitcoin. The asset for them is now part of their strategy.
In Europe, their somewhat sclerotic stock markets may find some life in none other than cryptos, in part because the far more accommodative regulatory environment has created a fairly exciting space in crypto ETNs.
The young now know what is Xetra, something that will likely, in the years to come, have far more consequences than in just cryptos as the new generation starts learning of these old spaces and ways.
Boomer BTC some call it, but there is a far more important development here that is beginning to take shape.
A traditional market maker is to begin market making for crypto ETPs. They’re the first of their kind as far as we are aware, but where it concerns specialist service providers that make a living facilitating financial actions, there have been quite a number of them especially last year that have entered this space.
This is in short the beginning of bitcoin’s integration into global finance and it has reached a point where arguably there is no return.
So if the market seriously thought there would be any adverse action against cryptos, it is probable the wider market would be adversely affected perhaps to the point where such action would be unpaltable.
Yet, at least where Europe and America is concerned, no one really thinks there would be such action and the likes of Lagarde are more and more seen as just beating their own book rather than genuinely putting forward arguments.
It is probable instead that the feeling is more how to tap into the opportunities this new technology offers and how to harness it.
These opportunities are the raw ones: cheaper transactions yada yada. But also the cultural ones: a new generation eyeing an upgrade of finance.
The stock market is changing already, but is set to change a lot more as this generation no longer accepts it as some archaic guild for and by bankers, but our market and, not yet but soon enough our playground.
Forces are now in play that will demand the purchase of any stock listed anywhere at the convenience of just a click, whether in a traditional form, tokenized, or in some app.
At the same time financial code automation will lead to nothing less but an outright revolution – a peaceful and hopefully a prosperous one – as certain tools that were locked up in backrooms of army coders now through incentives brought by cryptos and tokenization are being opened to the public.
Finance therefore for the first time at least in our lifetime is being turned bottom up, with the public finally beginning to take charge albeit currently at a small scale that just speaks of a certain brewing trend.
Sooner or later, as regulators grasp what is going on, one should expect some sort of regulatory fomo because who doesn’t want the digital revolution in their own generally sclerotic industrial era stock markets.
It may well be therefore that it’s not just bitcoin merging with the stock market, but that the bitcoin spirit is making its way to wider finance.
That can only mean disruption is coming as the digital revolution now moves towards the heart of finance.