Get trading recommendations and read the analysis on Hacked.com for only $ 39 a month
The founder and chairman of the Interactive Brokers electronic brokerage company said that even if Bitcoin is a good idea, it should stay away from "the real economy".
The Hungarian American entrepreneur Thomas Peterffy, whom some people call "the father of high-speed trading," says that he is not against the digital currency trade. Yet earlier this week, the billionaire wrote a letter to J. Christopher Giancarlo, chairman of the Commodity Futures Trading Commission, warning of the dangers associated with cryptocurrency.
According to CNBC, he reportedly stated:
I think that bitcoin and other cryptocurrencies are good ideas.
Yet, in his letter, he writes that:
As a clearing member of CME, we are deeply concerned about the proposals that would allow Clearcoin and other cryptocurrency derivatives to be erased in the same clearing organization as other products.
Instead, he asks the Commission to ask any clearing organization wishing to clear any cryptocurrency or derivative of a cryptocurrency to do so in a separate clearing system. According to him, there is no fundamental basis for the valuation of bitcoin or the cryptocurrency market. This, he says, has been illustrated by the fact that the price of bitcoin has risen by almost 1,000% in 2017.
Cryptocurrencies have no mature, regulated and tested underlying market. Products and their markets have existed for less than 10 years and have little or no relation to economic circumstances or reality in the real world.
In his letter, Peterffy also reacted to the news of Terry Duffy, CEO and Chairman of the CME Group, who announced in late October that a term bitcoin would be launched by the end of October. end of 2017, pending regulatory approval. According to Peterffy, this could "destabilize" the system by adding:
If the Chicago Mercantile Exchange (CME) or any other clearing organization clears a cryptocurrency with other products, a cryptocurrency price move that destabilizes members who erase cryptocurrencies will destabilize the cryptocurrency. compensation organization itself and its ability to fulfill its fundamental obligation to pay winners and collect from losers on other products in the same clearing reserve.
Peterffy estimates that unless isolating the liquidation risk from cryptocurrency, a catastrophe in the digital currency market that destabilizes a clearing organization will destabilize the real economy. The only way to prevent it is to put it, he says, in a clearing system separate from other products.
Featured image from YouTube / CNBC.