Episode Highlights:
- 00:00 – Introduction
- 00:36 – Circle Buys Poloniex
- 00:59 – What Is Poloniex?
- 02:06 – What Is Circle?
- 02:55 – The Circle App
- 04:13 – Circle’s Investors
- 05:05 – What Does This Mean For Cryptocurrency?
- 08:10 – Wall Street Buys Into Cryptocurrency
- 11:00 – Conclusion
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Transcription:
00:00 – Introduction
Hey, what’s up guys, it’s Dan again from cryptocamacho.com where each day I bring you the latest tips, tricks and news in the cryptocurrency space. Today guys, I want to talk about Wall Street and cryptocurrency. There was a big announcement today in the news that a Wall Street-backed cryptocurrency start-up purchased the Poloniex Exchange, the Poloniex cryptocurrency exchange was purchased by a Goldman Sachs, Wall Street-backed company, and I want to talk through that just a little bit and what that actually means for the cryptocurrency markets and for Wall Street to really point that out.
00:36 – Circle Buys Poloniex
So, let’s just jump right into it, so today there was an announcement, here’s an article that refers to it, I could put this in the show notes, ‘The cryptocurrency exchange Poloniex, has been bought by Circle. Payment company Circle has announced that it has purchased Poloniex cryptocurrency exchange. Rumours of the acquisition have been circulating for weeks but now are finally confirmed from both parties.
00:59 – What Is Poloniex?
So, first what is Circle and what is Poloniex? So, if you guys remember, I’ve done a review on Poloniex before, Poloniex is one of the largest cryptocurrency exchanges out there, I’ve been using Poloniex for quite some time and then I abruptly stopped using the exchange, maybe about four or five months ago, because they had actually taken my Steem tokens that I tried to transfer out of Poloniex to a different exchange, they actually locked them down, they never made it to the other exchange, they were never transferred and so I made a video about Poloniex, explaining what happened and explaining that others should beware of the Poloniex exchange because of that, then, however, about two, three months later, after that incident, they went ahead and they actually gave me my Steem tokens back, so I made another video to say Poloniex has been vindicated. So, to say the least, their customer service has not been stellar, but they have been a cryptocurrency exchange now for several years and are one of the biggest exchanges out there. so, here’s the Poloniex exchange, if you haven’t seen it before. This is what was purchased by a Wall Street firm, by Wall Street-backed company just recently, so this is the exchange.
02:06 – What Is Circle?
So, now what was actually purchased? So, who purchased Poloniex? So there is a company called Circle, this company is called Circle, and what Circle does cryptocurrency app that allows you to send money, or send Bitcoin, Ethereon, so forth and so on, allows you to send cryptocurrency like a text message, you could send a text message to when your friends and actually send them cryptocurrency through your phone, through your iPhone, through your Android, whatever and that’s what Circle is doing. Circle is backed by Goldman Sachs, which is a Wall Street company, one of the biggest Wall Street companies in the entire world, one of really the biggest financial companies in the world, very close ties to the U.S. government, very close ties to Wall Street and other financial institutions, they have actually invested heavily and are backing this company, Circle.
02:55 – The Circle App
Circle announced today that they were acquiring that exchange Poloniex for four hundred million dollars. So, what does that actually mean guys? So, Circle, I’m going to do a review on Circle at a later time, but essentially what Circle does, like I said, it allows you to send Bitcoin, Ethereon and other cryptocurrencies to your friends, to your family, to your colleagues, whoever you want, through your smartphone, through a text message. Pretty cool right? Pretty innovative. Finally, you can share money like everything else online, whether your friends are all in the same room or different country, super easy and totally free, that’s the way it should be. And this is fantastic because the more and more that cryptocurrency apps become simplified and simple, like Circle, with simple and clean interfaces, very good you UX experience like this, I think the more that we’re going to see cryptocurrency adoption, the more people like your mom, your sister, your grandmother, people that may not necessarily be quite as tech savvy, and no offense, maybe your grandma is extremely tech savvy, if she is, tell her to give me a call, I would love her to do some work on my website, but if she is not tech savvy she can use something like Circle, which makes it very, very easy to send money, you just send it through your phone, just send some cryptocurrency and there you go, you can sign up, give it a whirl, I’ll put the show notes…put the link on the show notes so you could see to check it out.
04:13 – Circle’s Investors
But essentially, what you do is you download the app, it’s easy to use, but what is the main selling prop here? So, Circle, we speak money, we believe sharing money should be instant, free, secure and fun, no matter who you are in the world, everybody should be part of the conversation. So really quick I want to go to the ‘About Us’ page to show you how this is tied to Goldman Sachs, right so here is the mission, their mission statement, their investor, Circle is backed by one hundred forty million dollars in venture capital from investors including Goldman Sachs, IBG Capital Partners, Breyer Capital, Accel Partners, General Catalyst, Baidu, so forth and so on, so a lot of Wall Street firms are backing this company, Circle, they’re backing this cryptocurrency app, you can see all their logos here, and they just purchased Poloniex, the exchange, for four hundred million dollars.
05:05 – What Does This Mean For Cryptocurrency?
So, let’s talk a little bit more about that acquisition. So, initially, it was rumours, it was rumoured that this was going to happen but now it’s been confirmed today that the acquisition actually did happen and I think this headline really captures it all, ‘Old exchange meets new money,’ so Poloniex has been around for a while, they’ve been around for quite some time, now it’s very, very interesting that a Wall Street-backed company, Goldman Sachs as well as others which I just went over, is buying Poloniex the exchange. Does this mean that Wall Street is now starting to look at cryptocurrency companies and starting to acquire many of those companies, to start consolidating the market? I think that’s likely to happen in 2018 and 2019, I think we’re going to see a lot of consolidation as Wall Street moves over into the cryptocurrency markets, as the financial institutions and banks and governments start to take hold of this cryptocurrency revolution. I think we’re going to see a lot more acquisitions in this space from Wall Street firms. Banks, Wall Street firms are looking at how they can get involved in cryptocurrency, they’re looking at how they can actually start to get their fingers in every piece they possibly can in cryptocurrency because they know they’re kind of sitting on bought time, their days are numbered, banks days are numbered, big financial institutions, their days are numbered, governments and their function is going to be changing very, very dramatically in the next decade and I think that this is kind of the writing on the wall and this is what you should be looking for. When Wall Street firms start acquiring cryptocurrency companies, they’re making plays so that they can enter into the cryptocurrency space, whether they’re doing it publicly, whether they’re doing it quietly, and they are actually doing both, it’s a clear sign that the money will be shifting from I.P.O.’s, from stocks, from banks, from traditional investing into cryptocurrency investments, ICO’s, new cryptocurrency companies that are being built up, exchanges, they want to control a piece of the action. The money supply in the U.S. is changing, the U.S. dollar will be changing, the value of the U.S. dollar is going down, it’s declining, the influence of the U.S. dollar is declining, the debt that the U.S. dollar…the debt that the U.S. economy has is astronomical, it’s like over twenty trillion at this point, and it’s not sustainable, it will eventually collapse, I don’t know when that’s going to happen, but eventually the dollar will hyperinflate and it will go down the drain, and cryptocurrencies will take over. I don’t know if Bitcoin, or another cryptocurrency, or something else is going to, eventually, become the dominant world reserve currency, like the dollar is today, but I definitely know that the dollar will be dwindling in value and will not be as prominent as it is and has been in the last couple decades, in the decades to move ahead. And this is a clear indication to me that Wall Street is trying to move into the cryptocurrency space as quickly and as effectively as they can, and what better position than to buy a cryptocurrency exchange, really make it the premier, the best cryptocurrency exchange, so forth and so on, so it’s very, very interesting to me.
08:10 – Wall Street Buys Into Cryptocurrency
Let’s look a little bit more at the news here, ‘in the last year or so exchanges, such as Bittrex and Poloniex, have been largely eclipsed by new entrance Binance and Kucoin, Poloniex still carries great weight and however and…OK, so if you look at the news a little bit more and just type in ‘Circle Goldman Sachs,’ you’ll notice how Goldman Sachs-backed cryptocurrency start up could create a Wall Street style, and now it’s got me interested in what it’s going to actually say, a Wall Street-style giant, this is what I was just saying, big crypto currency acquisition could create a large wall street style financial giant, and this is the first step guys, this is going to happen whether you like it or not, this is going to happen…what in the world is this? oh, this is terrible, sorry this ad came up. OK, sorry about that, sorry about that, this ad came up on the site, Circle, a cryptocurrency focused financial service firm will announce today that it is buying cryptocurrency exchange Poloniex and will move to immediately make Circle one of the largest and most influential companies in the industry. Fortune’s Robert Hackett profiles the company and hopes the leverage the technology behind Bitcoin to become the bank of the next century. So Goldman Sachs gets it, they want to become the bank of this next digital finance century, this next century is going to be largely dominated by cryptocurrencies, Bitcoin, other cryptocurrency and Goldman Sachs is getting ahead of the game, even though they’re doing it through this third party company called Circle, right so very, very, very interesting, that there’s a lot of doom and gloom about the cryptocurrency markets from banks like Goldman Sachs, but then, behind the scenes, they’re investing in crypto currency, they’re setting up crypto funds, they’re exploring blockchain and trying to use blockchain to incorporate into their technology, into their processes and they’re buying cryptograms exchanges, I mean what else do you need to know that Wall Street is bullish on cryptocurrency, maybe they’re not bullish, but they’re definitely scared of the industry and they’re been talking about it now for some time, and this is again a clear, clear indication of this right. Let’s take let’s take a quick look, Circle Trade is the primary reason behind Circle’s profitability, the desk handles more than two billion a month in cryptocurrency transactions, with a minimum deal size of two hundred fifty thousand dollars, so Circle has already Circle, the app which I just showed you a little bit ago, is already producing a lot of revenue in cryptocurrency and this is just another play for them to get their fingers deeper into the cryptocurrency market by purchasing the exchange. So, this is very fascinating, and it could definitely create some big, big Wall Street companies that are buying into cryptocurrency. So, if you look at another article Goldman-backed start-up, Circle, buys major crypto exchange Poloniex, again, kind of says the same thing here, but I think this is fascinating.
11:00 – Conclusion
I just want to leave it at that, I want to know what you guys think about this, do you think this is kind of a start of other Wall Street companies now starting to gobble up all the cryptocurrency companies that are popping up left and right? Is this an attempt for them to consolidate power, consolidate their influence in the crypto space and really get their fingers in the crypto space a lot more deeply than it has been before? I would love to know your thoughts but I think this is the writing on the wall, in 2018 crypto markets are going to blow up even more, again, writing on the wall, take this as a sign, take this as a precaution, take this as a warning to you to get your money into cryptocurrency guys, you’re going to make money, you’re going to be more secure in crypto than you are in dollars or in any other currency, if not in the short term, definitely in the long term so just take that for what it’s worth. Again, I’m not a financial advisor, this is not financial advice, I’m not a C.P.A., but it is my opinion that this is going to happen over the next several years. I’m Dan from cryptocamacho guys, if you haven’t subscribed please do click on that link, that little red box below the video, please click on it and you will see all my updates as they come out on a daily basis. Thanks for watching guys, until next time.
