Ten years later, after Lehman Brothers filed for bankruptcy in 2008, many new financial products I hope to attract investors to the market. However, the task is much more complex. The financial crisis that gave rise to Bitcoin, had plenty of negative emotions causing investors to stay away from stocks and traditional markets. These problems have also pushed financial institutions to look for new products, are far outside the conventional banking sector.
The more they are, the harder they fall
September 15, 2018 Lehman Brothers Holdings Inc. applied for protection from bankruptcy, triggering a collapse of the financial market crisis of 2008. As at the time of filing, the investment firm reportedly had assets in the amount of 600 000 000 000 US dollars and thus the largest bankruptcy in American history.
Ten years later, many investors still afraid to get your money back in the hands of the bankers and the emotional consequences of the housing crisis occurred ten years ago, is only now beginning to sink in.
Despite market conditions that for the most part remained positive, investments in stocks and in the traditional market has decreased significantly. People just don’t refer to these tools. According to the Gallup survey, 65% of investors interviewed in 2007, invested in stocks, but by 2018 this figure fell by as much as ten percent, and that hundreds of billions of dollars. This happened despite the growing market, which has returned all the value lost in 2008, plus a significant increase.
“People who do not buy and do not invest, do not know that over the last decade, they missed the 200%,” said Barrons, Director of behavioral Finance at Betterment Dan Egan. “They’ll probably continue to save and invest in the future”.
Finance 2.0: wall street and Bitcoin
In the old system there is a new wave of consumer banking. For example, Challenger banks, such as N26 and Fidor in Germany, have combined technology and financial solutions to help fill the void in the market. In June 2018, Fidor also celebrated its five-year partnership with Bitcoin.de the bitcoin exchange on which they announced the launch of a new debit card combining cryptocurrency and Fiat, on the basis of Mastercard.
The next wave synthetic Bitcoin products offered on wall street showed us how popular can be cryptocurrency. Morgan Stanley, Goldman Sachs and Citigroup announced a series of various financial instruments created on the basis of contracts for the supply Bitcoin futures on CME and CBOE. Despite the differences between the swap inexpressible forward (NDF) and receiving the digital asset (DAR), this initiative speaks volumes.
Institutional investors tend to take more risks when working with cryptocurrencies. Moreover, firms on wall street are also working closely with insurers and this has become the norm. As crypto alternative to far from a beta launch, is still needed obsolete modules of financial and insurance products.
Paxos and Gemini at the same time launched its stalkin after the approval of the NYDFS. A closer look at the creation of the Winklevoss Twins shows perhaps the most interesting decision ever seen in the crypto space.
Centralized GUSD Gemini ultimately returns power to the keepers and is likely to attract the interest of other Central banks in achieving stable results and use. Any use of the private blockchain, visible only to stakeholders, are sure to attract the attention of large transnational corporations.
Speaking of these events again, remember that Nakamoto entered in the block of Genesis:
This is, without doubt, the end of one era and the beginning of another.
Bitcoin Creator foresaw all this nine years ago.