The crypto market and traditional financial markets have differences from the emergence of the former. With the birth of the first cryptocurrency bitcoin, the financial markets have treated something from another extreme. Very few people understand what market’s insights actually think of bitcoin and other cryptocurrencies.
Recently a person who’s closely related to Wall Street brought insights from the market. Former member from the Asset Management division of Goldman Sachs, John Haar recently published an article. In his article, he explained details regarding what perception Wall Street holds regarding Bitcoin, bank deposits and economics. While explaining this he noted different reasons due to which people belonging to traditional finance avoid the potential of bitcoin to treat it as global money.
In a blog post published on Monday, Haar stated that no one understands or even gets time to understand either the history or basics of money. He cited an example that no one within the market understands the reason behind gold being a dominant money, if it’s the durability, portability, recognizability and scarcity of gold.
While talking about digital gold referring to gold, Haar argues that bitcoin has a similar case. He said that considering this fact people who belong to traditional finance have their notions regarding the money’s fundamentals history, which is by far influenced by Keynesian economics. This also includes MMT in recent times considering its emergence.
Keynesian economics theory and MMT that is modern-monetary theory are known to defend centralized control on traditional money belonging to any national authorities. They try to control the money supply in order to regulate and manage the economy. However, bitcoin features as a fundamental asset in the form of digital money with its unique characteristics like fixed tokens supply. Haar took the example of several central banks’ related people including Christine Lagarde and Ben Bernanke lacking historical knowledge regarding the asset.
Source: https://www.thecoinrepublic.com/2022/08/22/john-haar-explained-bitcoin-is-out-of-wall-streets-understanding/