Commentary

Erik Hoel
Traders Magazine Online News

Will The Bitcoin Bubble Pop Or Will It Envelop Us All?

Guest contributor Erik Hoel asks the question whether the worst is over for bitcoin holders, or still yet to come, what is yet to come? And why.

Traders Poll

In your opinion, what is the biggest hurdle facing the blockchain?

Cost of implementation

17%

Too many systems available

23%

Not applicable to my business

3%

Uncomfortable with the technology

33%

Nobody else is using it

23%

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February 22, 2010

Cover Sidebar: A Reform Too Far

By Gregory Bresiger

Goldman Sachs CEO Lloyd Blankfein, in recent remarks, gave an example of what would be too drastic a reform in derivatives clearing and processing.

"If we simply ban customized derivatives to satisfy the perception that everything associated with these markets is bad, we run the risk of limiting risk capital, ultimately reducing capital expenditures, business investments and, ultimately, economic growth ... To me, the right incentives should be at the heart of the reform, and this is particularly true with respect to how non-standard derivatives are managed. Customized derivatives should entail more capital requirements, for example. The pros and cons of buying and selling derivatives on and off an exchange should be immediate and clear to all market participants."

Source: Goldman Sachs  

 

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