The Bankers Who Destroyed Our Economy Are Now Trading Bitcoin

At its core, Bitcoin is worthless. That people continue to trade the invented digital currency is understandable, because it's possible to turn a quick, risky buck. It's more gambling than economics. So, of course, the financial professionals who levelled the global economy love it.

Here's an interesting trend within the world's Bitcoin exchanges. People with real-money jobs can't resist the thrills of trading the fake stuff as if it were an international currency. Reuters dug up some sources within the world's biggest financial institutions and found that people who work at Morgan Stanley and Goldman Sachs are trading Bitcoin from work. One source estimated that 90 per cent of traders have bought and sold the currency.

It's not all that surprising that traders have embraced the anarchic, stateless fiat. These are the very people who bundled billions of debt into a mammoth bubble of unstable financial products. They're sort of the same thing. [Reuters]


Comments

    No. Backward. Point missed.

      This times a fucking million

    So, yet another reason to steer clear of Bitcoin, eh!

    bit coins are excellent.

    i buy drugs with them online and they're awesome. its also a great way to learn how to do currency trading.

    bitcoin herald a new way to move money around without the ATO (tax agency) knowing what your doing.

      Bullshit. Bitcoins are a ridiculous, childish libertarian pipe dream for sperglords who don't understand economics. Any person with half a brain could tell the whole venture was retarded, well before Gizmodo ran that article about a supposed underground drug market run on Bitcoins, that threw the whole thing into the limelight.

      Now children like you read their forum and delude yourselves into thinking it's a legitimate currency, trying to convince others on the internet that you're part of some underground society of badasses who stick it to the man by buying drugs illicitly. Give it up, you're not the next Wavy Gravy, you're a kid who can't string two words together.

        It has the value and legitimacy people give it, this seems fair to me.

        Way fairer than other currencies.

          It doesn't have any value or legitimacy whatsoever. The 'value' of Bitcoins nose-dives at the slightest provocation since there is no regulation or oversight. This is compounded by users with dedicated rigs 'mining' it and causing obscene amounts of inflation. It's the very definition of 'pie in the sky' economics.

          This ridiculous notion of simply ordering drugs online via Bitcoin, right under the nose of the establishment is utter nonsense. The payment method does not change the drug-screening procedure of UPS or Australia post. Nor is it the fear of being linked via CC, the main bottleneck for purchase.

            regulation? like the kind that created the housing bubble?

            Bitcoin doesn't need oversight because it's controlled by an algorithm.

            In your two posts you haven't made a single rational case against bitcoin. The essence of your post is "bitcoin is stupid and you're stupid for liking it". Real clever mate, go back to troll school.

        I have been studying Economics for 6 years and bitcoin is brilliant on many fronts. yeah its not Keynesian but Hayek would of loved it. Bitcoin or a flavor of bitcoin is the future of currency (not money, only gold and silver is true money)

          +1 Josh.
          Steve get a grip of yourself. Bitcoin doesn't have anymore or less legitimacy than any other currency in my view. In my view a currency is something that can be traded for something and I think this has been the case for thousands of years now. These days, if it can be traded it will, tangible or not. For example Banks love to trade derivatives... whilst being based (derived) on a tangible asset and debt they are far from it
          In comparison it is also no more or less manipulated by government policy (manipulation). Think QE1, QE2, QE3 by the US government to devalue their currency to kickstart manufacturing and pay back debt (and asdf is correct about the housing bubble also). There is no market which people will not try to manipulate for money. The UK manipulated their currency after WWII after they realised they were in so much shit they couldn't repay their debts. Gotta see the bigger picture mate

    Someone's mad that people are making fortunes trading it, and he doesn't know how to.

    I dont believe that major players are trading bitcoin. And if they are its not much because any major money would see bitcoin move allot more than it has been.

    True, probably some minor traders at big companies have bought some bitcoins, but once the market gets bigger their bigger traders will know when to step in. We will know when major traders step in.

    The ignorance here is shocking. Firstly, a FIAT currency is money 'by decree', bitcoins however are digitally 'mined' to a finite number of 21 million bitcoins and will be fully 'mined out' somewhere around the year 2030. The peer to peer bitcoin network verifies the validity of each transaction thus preventing counterfeiting.

    THUS Bitcoins are not created by the decree of anyone or any group and are strictly limited, AND SO bitcoin is NOT A FIAT CURRENCY.

    Bitcoin being fundamentally limited to only 21 million coins EVER, and being nearly infinitely subdivisible, makes it a deflationary currency - and like gold and other precious metals it shall hold its value relative to unlimited fiat forms money -- including current national currencies and all the other digital credits.

    Yes, bitcoin is unstable at the moment, but this is only because so few people hold it; hence it is quite easy for someone with even shallow pockets to manipulate it's price. This is however going to be the case with ANY NEW CURRENCY, wherein people are not forced at the point of a gun to use it. Over time bitcoin usage shall continue to expand until it becomes impossible for currency speculators to cause radical shifts in value. I don't lay any claim that bitcoin is the money of the future, but any GOOD form of money in the future will have to have at least all the features of bitcoin if it is to be a serious competitor.

Join the discussion!

Trending Stories Right Now