How to protect yourself from this dangerous game

Good or bad, there’s one thing for sure: institutions are going to get into crypto whether we like it or not.

And they’re coming in hot.

It might not be today, or tomorrow, but soon everything I’ve outlined in this report is going to come to pass.

Just think about ICE and BAKKT.

ICE is the parent company of the New York Stock Exchange, where trillions of dollars of trading happens every day. It’s one of the largest stock exchanges in the world. …

Let’s talk about the concept of hypothecation. This is when an asset is pledged as collateral to secure a loan, without giving up title, possession or ownership rights, such as income generated by the asset, to the underlying asset. It’s something that’s common in mortgage lending, but it can complicated.

Let’s say I have a chocolate bar and I don’t want to give it to you. Instead of handing you the chocolate, maybe I can give you a piece of paper saying I owe you a chocolate bar in the future. That’s hypothecation.

I owe you a chocolate bar in the future

Now you have that piece of paper…

Wall Street bank Goldman Sachs made big news in December 2017 when it announced plans to launch its own crypto trading desk.

It happened right in the middle of the big Bitcoin run-up at the end of the year and immediately caused prices to spike even further.

This was it. Validation. Official recognition from Wall Street that cryptoassets have true value and are here to stay. The bank said they planned to get the business up and running by the summer and started hiring right away.

Then… nothing.

June came and went. Then July. And August.

But then in September…

Mark Moss

Studying history to predict the future, trend hunter, fundamental analyst, speaker, adventurer

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