With Bitcoin (BTC) price increasing up to $4400, world’s largest banks begin to seriously consider cryptocurrency adoption.
The bitcoin price is going up after the two-day slump fixed earlier this week. On Thursday morning, October 5, the BTC/USD exchange rate has dipped falling as low as $4,164 but then has quickly recovered in the afternoon hours increasing to the maximum altitude of $4404.57 (according to CoinMarketCap).
The rally has largely been fueled by increasing demand from Korean traders, which still remains unclear as BTC/KRW occasionally lags behind the global average price. However, analysts predict the continuing growth of bitcoin price in the future.
Andreas Antonopoulos, bitcoin and security expert, stated last year that banks will reject bitcoin at first, try to compete with it using blockchain technology, then inevitably adopt bitcoin. And the situation that is currently being observed more than just confirms his words. Some of the largest companies in the finance and banking industries, such as the $95 billion investment bank Goldman Sachs and financial services company Fidelity with over $2.13 trillion worth of assets under management, are considering bitcoin adoption and cryptocurrency service offering.
As in words of Goldman Sachs CEO Lloyd Blankfein who stays optimistic towards bitcoin, paper money or fiat currency was once considered odd too:
“Still thinking about Bitcoin. No conclusion – not endorsing or rejecting. Know that folks also were skeptical when paper money displaced gold.”
Although some financial institutions are still skeptic about bitcoin’s future, some banks tend to recognize the rapidly increasing demand for bitcoin and cryptocurrency market which gives them the choice either to isolate themselves from the emerging market or keep up with the financial innovation and stay at the forefront of it.
Axel Pierron, managing director of bank consultant Opimas, stated:
“They’re clearly receiving interest from their clients, both from retail investors and on the institutional side. It’s highly volatile, it’s highly illiquid when you need to trade large volumes, so they see the opportunity for a new asset class which would require the capability of a broker-dealer.”
If the US largest banks and financial institutions support bitcoin and cryptocurrencies, bitcoin’s long-term growth is expected to happen. If it can support hundreds of millions of new users through efficient scaling solutions, it will lead to increased adoption by merchants, banks, institutional investors, and casual traders.
As Morgan Stanley CEO James Goldman commented:
“I’ve talked to a lot of people who have [invested in bitcoin], and it’s obviously highly speculative, but it’s not something that is inherently bad. I think it’s a natural consequence of the whole blockchain technologies, as I understand it.”