by Florin Oprea
Zheping Huang – Quartz
The price of bitcoin hit $10,000 on Nov 29, reaching the historic milestone for the first time, even as respected voices warned against investing in the cryptocurrency.
FAO: Looks like everybody and everything contributed in reaching this psychological threshold. Believers and non-believers must be equally amazed by this year’s evolution of BTC. What’s next? Well, nobody knows for sure. One can only assume, just like Novogratz did, once again – read below…
Evelyn Cheng – CNBC
Former Fortress hedge fund manager Michael Novogratz said that bitcoin can multiply more than four times in roughly the next 13 months.
Novogratz: “Bitcoin could be at $40,000 at the end of 2018. It easily could,” “Ethereum, which I think just touched $500 or is getting close, could be triple where it is as well.“
DNT: Whoa..What a prediction! But he also said that BTC will be “the biggest bubble of our lifetimes” and the cryptocurrency market will be “a wide roller coaster, full of froth and fraud”. Guess only time will tell, as Khaldoon Al Mubarak, who heads Abu Dhabi’s Mubadala Investment Company, said – more here – Fans’ Section, as well.
FAO: We won’t get too tired of reminding you that Novogratz is launching a $500m hedge fund to invest in cryptocurrencies, ICOs and related companies. He is also putting his money where his mouth is, as $150 million are his own….
Eric Lam, Justina Lee – Bloomberg (subscription)
Here’s what bitcoin watchers are saying about the dizzying rally.
FAO: At the time of writing bitcoin reached $11,000! And there’s a “sea of green” on Coinmarketap.com!
Laura Shin – Forbes
When asked about his crypto investing philosophy, Naval Ravikant, the executive chairman of AngelList and partner of MetaStable Capital, says, “I definitely have a distinct point of view, which is that for the most part, I’m looking at money or money like tokens.” For instance, he is interested in tokens that can serve as a means of exchange, unit of account, store of value, or ones that can power financial contracts.
James Angel – Seeking Alpha
Both the CME Group and CBOE Holdings have announced that they will be trading bitcoin futures in the very near future. This will set off a battle between these two large exchange groups for dominance of the bitcoin derivatives market. Futures and the options on them will give investors safer opportunities to short bitcoin.
FAO: That will be an interesting battle to watch. And even more interesting – the specifications of these contracts and differences between the products offered by the two US exchanges…
Julie Verhage, Lily Katz – Bloomberg (subscription)
John Burnett and Hu Liang said they’ve formed Omniex Holdings, which aims to work with exchanges, over-the-counter venues and fund accountants to fill growing demand for trading services as digital currencies gain more mainstream acceptance.
FAO: Crypto-market structure is booming. I am sure you remember a good topic, we had it the other day, Coinbase having more users than brokerage firm Charles Schwab…need I say more?
Stan Higgins – CoinDesk
AlphaPoint has announced that it will create a new public network aimed at the digitization of real-world assets. Dubbed the AlphaPoint Public Network the initiative is the latest from AlphaPoint, which to date has focused on creating white-label products for exchanges and, more recently, organizers of ICOs.
FAO: The company also names a new CEO, Salil Donde, previously an EVP for Nasdaq’s Global Information Services.
Hyperledger, announced that 14 new organizations have joined. As a multi-project, multi-stakeholder effort, Hyperledger incubates nine business blockchain and distributed ledger technologies including Hyperledger Fabric, Hyperledger Iroha, Hyperledger Indy, Hyperledger Burrow, Hyperledger Quilt and Hyperledger Sawtooth, among others.
Gertrude Chavez-Dreyfuss – Reuters
Confronted with national regulators’ intensifying scrutiny of digital currency fund-raising, known as ICOs, many entrepreneurs are moving businesses to locations more welcoming to crypto-currencies and known for low taxes.
FAO: Let’s see the list: Singapore (OF COURSE!), Switzerland (remember their Crypto-Valley? – more here), Eastern Europe (remember their brain pool? – more here in FinTech Daily News ) and the Caribbean (hedge funds paradise).
Stephen Gandel – Bloomberg
Even compared with some extreme bubbles, bitcoins, look bloated.
Take dot-com stocks, which were the biggest bubble of the past few decades, and likely the largest in stock market history. At the height of the dot-com stock bubble, the technology-heavy Nasdaq stock index had a price-to-earnings ratio of 175. Bitcoins equivalent of a trailing P/E ratio is 708. That means based on valuation, bitcoins are four times more expensive than dot-com stocks were at the height of their bubble.
FAO: Maybe Novogratz is right…maybe not…Can you handle the stress of a ride in the cryptoverse?
Jeff Cox – CNBC
The Google search term “buy bitcoin with credit card” is around its historic peak as the price scales new highs, notes Nick Colas of Data Trek Research.Other search trends show that bitcoin holds a solid lead in Google quests for digital currencies, even though it has a growing list of competitors. But Mitchell Goldberg of ClientFirst Strategy says the bitcoin craze is a sign that “we’ve entered the final and stupidest part of the bull market.
Ari Paul – Forbes
The total market value of cryptocurrency has increased from $18 billion at the start of the year to over $300 billion today. Sometimes it seems like everyone is talking about Bitcoin, yet less than 1% of the world owns any. Cryptocurrency today is similar to the tech boom in 1994.
Oliver Ralph – Financial Times (subscription)
Heavyweights Allianz, Swiss Re and AIG – have voluntarily signed up to collaborate on a technology initiative called B3i. The project that has brought them together is an existential one: the use of mutually distributed ledgers that can never be changed – aka blockchain – in insurance.
Leonid Bershidsky – Bloomberg
With bitcoin approaching the $10,000 mark (Ed Note: BTC price exceeded $10,000 yesterday) and Coinbase, the bitcoin exchange, boasting more accounts than brokerage Charles Schwab, some preemptive consolation and advice are in order for people who stand to lose lots of money in a crash. First the consolation: Even if that money goes up in smoke, the investment will have helped make the world a better place. And the advice: There’s a way to profit from that too, by making side bets on other applications of the technology that powers bitcoin.
FAO: You know what? It’s pretty difficult to edit a daily newsletter when the price of an asset you cover jumps $1,000 per day…
FAO: Florin Adrian Oprea, Editor-in-chief Blockchain Daily News
DNT: Decebal Nicolaie Todarita, Editor Blockchain Daily News