Bitcoin Foundation cofounder didn’t confirm the rumors that Bitcoin is only a bubble. He has spread this fear, thinking that central banks have inflated the stock market.

From the end of the last year until now, Bitcoin had different prices, beginning with $20,000. Then it collapsed $7,000, making people think that Bitcoin is in a bubble that will burst.

Jon Matonis, the co-founder of Bitcoin Foundation in 2012, declared: “To the people who say Bitcoin’s a bubble, I would say Bitcoin is the pin that’s going to pop the bubble. The bubble is the insane bond markets and the fake equity markets that are propped up by the central banks. Those are the bubbles.”

Matonis, who spoke to Business Insider this month, believes we are entering the “post-legal tender age … the central banks will not drive this.” “Decentralized cryptocurrencies like Bitcoin will power this shift”, he said.

“Hard coded into the original block zero genesis block of Bitcoin was a headline from The Times of London saying: ‘Chancellor on the brink of second bailout for banks,’” Matonis said. “All they’re doing is papering over the bullshit infrastructure. That headline epitomizes what Bitcoin is about, that’s why it was hardcoded in there.”

Matonis, for the first time, traded with Japanese bank Sumitomo and Visa before setting up Bitcoin Foundation in 2012. Matonis is still remaining an executive director.

Bitcoin Foundation cofounder:’The regulators are so confused’

Matonis thinks that is impressive that Goldman Sachs is taking in consideration to enter in the world of crypto.

 

Bitcoin Foundation’s Jon Matonis:

 

“I think it’s fabulous that they’re getting into it because it brings in new liquidity,” he said, adding that the institutions will help “mature the market” and reduce volatility.

“They’re going to develop futures markets, options markets, I even think you’re going to start to see interest rate markets around Bitcoin,” he said. “We’re used to hearing things about Libor, the index for Bitcoin interest rates is Bibor.”

Matonis doesn’t think crypto should have regulations.

“I think we should operate in an environment of caveat emptor, let the buyer do his research,” he said. “This hopefully has forced a lot of investors to do more research. No one is forcing them to invest in ICOs [initial coin offerings]. If you worry about the risk, just walk away.”

He added: “The regulators are so confused, not just in Europe but in North America as well. They’re used to fundraising models that involve selling debt or selling equity.”

Matonis characterized Bitcoin as a “third model for a startup to raise funds.”

“They actually issue utility tokens into the market that don’t represent equity, they don’t represent equity, they don’t represent debt, they represent a negotiable claim on the success of the token which is in effect, hopefully, linked to the success of the company,” he said.

“This is an entirely new model and it doesn’t fit in any of the regulator’s boxes.”