Posted on 02/11/2021 9:38:19 AM PST by SeekAndFind
The oldest bank in America will now be storing Bitcoin on behalf of its asset-management clients, according to the Wall Street Journal.
“Digital assets are becoming part of the mainstream,” said Roman Regelman, chief executive of BNY Mellon’s asset-servicing and digital businesses.
BNY Mellon’s announcement marks the first time one of the big custody banks has unveiled a road map for treating digital currencies as any other asset.
Decrypt reports that the bank plans to enable cryptocurrencies to flow through the same systems that it uses for its traditional currencies and stocks.
It has created a prototype for doing this and is engaging with clients to see if they want to use it.
BNY Mellon intends to begin offering these capabilities later this year.
The reaction helped extend a rebound from overnight lows (crypto was oddly weaker after MasterCard and Amazon both announced pro-crypto news), back above $46,000...
Source: Bloomberg
BNY Mellon's move is ironically timed as it follows Tim Lane, the deputy governor of The Bank of Canada, proclamation that costly verification methods and unstable purchasing power makes cryptocurrencies like Bitcoin a "flawed" method of payment.
In a speech on "payments innovation," Lane desperately attempted to pour cold water on the decentralized system of payments would entirely disrupt his industry, exclaiming further that, "the recent spike in their prices looks less like a trend and more like a speculative mania - an atmosphere in which one high-profile tweet is enough to trigger a sudden jump in price."
He doth protest too much we think.
*Car boom is speculative mania says horse dealer https://t.co/32XHrTwPSO — Smokey 🧲 スモーキー (@BeegSmokey) February 10, 2021
Nothing backs gold, silver, etc.
What backs gold, silver, and bitcoin is demand from people or institutions that want it and are willing to pay for it.
This is true of the dollar and most other currencies. The reason Bitcoin is valued so high is the supply is strictly limited. The Fed can print as many dollars as they want. Not true of bitcoin.
If Bitcoin continues to be a store of wealth and global demand increases as it is now Bitcoin is going to go a lot higher. I see bitcoin well north of 100k in the next five years or less. The numbers tell us it could easily be in the 250k range. Which sounds crazy but not with the supply so limited coupled with global demand and holding.
There were many posters here several years ago screaming Bitcoin is the equivalent of tulips. That was several years ago. They were incorrect.
Unfortunately scarcity is meaningless without demand. Lots of things are very very rare but have little to no value because nobody wants them.
As far as what is driving demand that really does not matter. As long as the demand remains high and supply limited then the price will remain high.
This is what is happening with Bitcoin. There are many different reasons people want to own some bitcoin today yet the supply is fixed so there is only so much to go around so you can guess what happens. The price goes up.
Maybe there will be a new found pass time of collecting Avon cars. You might be rich!
This is why I compare Bitcoin to Tulip bulbs. There was high demand until there wasn’t.
Pet rocks were a thing when I was in College.
Sadly, I don’t expect the Avon cars to be worth much in my lifetime. ;)
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