Market Veteran Explains Why Wall Street Doesn’t Understand Bitcoin
A man who spent 13 years on Wall Street claims that some people in traditional finance don’t understand the history or properties of money.
John Haar, a former member of the Asset Management division at Goldman Sachs, published a controversial article detailing what he perceived to be common opinions about Bitcoin, money and the economy on Wall Street.
He listed several reasons why members of mainstream finance are opposed or not appreciative of Bitcoin’s potential as global money.
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Ignorance of economic history
As explained in a post for Swan’s blog, Haar said that not everyone in the market has taken the time to understand the history or fundamentals of money.
For example, according to Haar, some traditional investors do not understand the characteristics that have made gold the historically dominant money: durability, divisibility, recognizability, portability and scarcity.
By extension, this could explain Wall Street’s understanding of Bitcoin, which is often referred to as “digital gold” for possessing these qualities “even stronger.”
On his Twitter, he demonstrated some evolution in how people understand and perceive Bitcoin:
Responses to the q “what do you think of Bitcoin” in different years— John Haar (@john_at_swan) July 27, 2022
2012: What is Bitcoin?
2017: Bitcoin is a worthless scam only used for illicit activities.
2022: Bitcoin is highly correlated with the Nasdaq. Govts won't allow it to exist.
There’s a trend here…
“Answers to the question ‘what do you think of Bitcoin’ in different years
2012: What is Bitcoin?
2017: Bitcoin is a scheme used only for illicit activities.
2022: Bitcoin is highly correlated with Nasdaq. Governments will not allow it to exist.
There is a trend here…”
“To the extent that those working in traditional finance have any views on the history or fundamentals of money, it is almost entirely shaped by Keynesian economics,” he said, “and perhaps modern monetary theory in more recent years.”
Both Keynesian economics and modern monetary theory advocate centralized control of a nation’s money supply to manage the economy.
Bitcoin, in contrast, resembles a commodity, with an absolutely fixed supply that no one can change.
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Privileged economic vision
The traditional finance worldview is generally contained in developed countries with relatively stable currencies and secured property rights. Under such circumstances, the need for Bitcoin is less apparent than for the citizens of Argentina, Turkey, Venezuela, Nigeria, and the like, where Bitcoin adoption is quite high.
With this, Haar concludes that most people in traditional finance who oppose Bitcoin have not arrived at their position through in-depth research or understanding, since, theoretically, Bitcoin could allow people to store their wealth without “investing”. your money.
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