Will Bitcoin Attract Wall Street Attention?June 8, 2011 11:41 am
Looks like the whole world right now is curious about Bitcoin. And why not, with such out-of-the-world returns. However the one big question on everybody’s minds is this: Will Wall Street ever take BTC seriously?
We think that the following three issues need to be resolved for that to happen:
1. A protocol needs to be established on changes to the bitcoin system. What is the process for changes, and who approves them, and how? This includes, among other things, increase in the number of bitcoins over a period of time. This will take care of the economists shouting “built-in deflation, hoarding” etc.
2. How will contracts be worded, if the transaction would be in bitcoins? This needs to be standardized.
3. Tax implications need to be clearly laid out. Right now there are two points where bitcoin transactions are tracked by governments: entry and exit. This needs to improve.
Once the above three issues are resolved, BTC would be a serious contender for the top asset slot on Wall Street.