Bitcoin Warning: Wall Street Tricks Are Reportedly Coming For BTC
The crypto market looks pretty bloody today, with the most important digital assets trading in the red.
The good thing is that Bitcoin was able to bounce back following the recent fall in price from a couple for days ago.
At the moment of writing this article, the king coin is trading in the red, and BTC is priced at $9,460.18.
Bitcoin has been seeing increased adoption in 2020, despite the global crisis that was triggered by the pandemic.
It seems that more investors continue to see a safe haven in Bitcoin and the digital assets and this will definitely turn out helpful for the mainstream adoption of the digital assets.
Walk Street tricks are coming for Bitcoin
The online publication the Daily Hodl just revealed that chief executive of Wyoming-based Avanti Financial Group and 22-year Wall Street veteran Caitlin Long said that there are some Wall Street tricks that may be on the horizon for Bitcoin.
During a new episode of Disrupt Meister, she said that while there’s nothing truly wrong with coin lending, she is worried that some entities may offer BTC-related products that are not actually backed by Bitcoin, as the online publication mentioned above notes.
“There is absolutely nothing wrong with debt and there is absolutely nothing wrong with coin lending as long as it is 100% backed with real on-chain coins. When you start to actually have off-chain claims to Bitcoin that are sold as if they are Bitcoin, and they are no longer linked to the actual blockchain itself, that is when you start to get that circulation credit creeping in. That is the bad type of financialization,” she explained.
She continued and said: “I have called it leverage-based financialization. Another way to call it is uncovered claims to Bitcoin that are not 100% backed by real Bitcoin.”
She also said that there are various ways in which the Wall Street does this and auditors don’t catch this.
We recommend that you check out the video above in order to learn more about what she had to say.
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Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.