Bitcoin is no bubble, but it will be the pin that pops the bubble - Matonis

Good morning traders and cryptofans, TGIF! Hold with the shenanigans for one more day, but keep the beer cool in the freezer already as weekend is approaching.

For one more time, let's look whats going on around us.

Fo sho, it is not a surprise to anyone, that all around us people announce the death of crypto and the bursting of Bitcoin bubble. Fo sho, the parabolic Bitcoin rise looks like it was a bubble, that plopped around the 20K mark, leaving bloodtrails in it's wake. And fo sho, the following slow slide down the slippery slope, is nothing more than letting air out and showing the proper place to all the late and greedy investors. As the old saying goes:

_{Buffett knows. src}

Perhaps it was a short-term bubble, the characteristics were there. But 'tis not the Bitcoin and cryptos, that is the real bubble, but the global bonds and stock markets. The stock markets feel like they have been already forever artificially supported by the central banks, QE (quantitative easing), where endless money is printed and pumped into stocks.

No pullbacks

Last reasonable pullback was 2016 oct-nov, when D. Trump was elected a the leader of the people of the United States. Retail traders and unknowing investors flocked to dump and sell, yet even then, a wildcard as DT was, the markets were not allowed to plop. Central banks, bullish algos stepping in have saved markets times and times over.

Now, according to Jon Matonis, the co-founder of Bitcoin Foundation, Bitcoin is not a bubble, in a bubble, or a cause of any bubble. According to him, Bitcoin is the pin, that will plop the global stockmarket bubble. Everybody is aware, that the music has been playing for too long and there won't be seats for everyone, when it suddenly stops. Of course, large institutional investors can possibly get out with less damage than some, but to diverify a portfolio, even they have started looking towards entering cryptocurrencies.

_{Jon Matonis. Img via coincrispy.com}

Jon Matonis says, that being the pin is essentially coded into Bitcoin. And that's true - for those of you who are not aware, a sentence was hardcoded into the genesis block (first block) of Bitcoin. "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks" Source. The date harccoded into the block possible refers to the actual mining/creating of the genesis block and the rest of the statement is a subtle way of saying, that when the banks fail, Bitcoin will take over, as a massive state-backed bailout was on the way.

Matonis has a few controversial ideas as well, where he is of the idea that cryptocurrencies do not need regulation and risk should be everyone's own business. According to him, current regulators are baffled as they have still not adapted the thinking required to fully understand cryptocurrencies and the technological and economical advances it could bring.

Read Matonis' opinion here on businessinsider.com

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What is the Bitcoin Foundation? I'm gonna spare you the bother of navigating their corporate-looking website and just qoute crunchbase.com:

Bitcoin Foundation is an American lobbying group focused on standardizing, protecting, and promoting bitcoins.

The Bitcoin Foundation

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_{wiktionary.org}

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