by Florin Oprea
Ivana Kottasová – CNN Money
Nobel winners and business tycoons lined up this week to criticize bitcoin. The harshest assessment came from Nobel laureate Joseph Stiglitz, who said that bitcoin “ought to be outlawed.”
Stiglitz: “Bitcoin is successful only because of its potential for circumvention. It doesn’t serve any socially useful function.”
Robert Shiller, who won a Nobel for his work on bubbles, said the currency appeals to some investors because it has an “anti-government, anti-regulation feel.”It‘s such a wonderful story. If it were only true“, he said.
Angela Monaghan – The Guardian
CEO Lloyd Blankfein attacks cryptocurrency after value dives 20% in a day, saying bank will not get involved until it becomes less volatile
Blankfein: “Something that moves 20% [overnight] does not feel like a currency. It is a vehicle to perpetrate fraud.”
FAO: So, the “undecided” Goldman Sachs CEO Lloyd Blankfein has just picked his team. Jamie will be so happy…
Leigh Thomas – Independent
‘It is a speculative asset. Its value and extreme volatility have no economic basis, and they are nobody’s responsibility,’ Bank of France Governor Francois Villeroy de Galhau warns
FAO: A growing number of European financiers are showing up to discuss bitcoin and crytpos. Especially ECB staffers and/or central bankers from various countries…
Julia La Roche – Yahoo Finance
Billionaire tech entrepreneur Mark Cuban made a case that cryptocurrencies like Bitcoin and Ethereum are more of a collectible than a currency.
Cuban: “If they were truly currencies, you wouldn’t try to convert them or value them based off of other currencies. [Their value] would just be intrinsic.”
Susanne Barton – Bloomberg (subscription)
Bitcoin is a commodity with many similarities to gold, and the volatility that has sparked investor concern stems mainly from its lack of liquidity, said Jeff Currie, global head of commodities research for Goldman Sachs Group Inc.
DNT: Today, the Fans’ Section is extremely crowded and, in an ocean of contenders, we have this favorable opinion of Jeff Currie, totally different from the one of Goldman Sachs Boss, Lloyd Blankfein…Now, that’s an example of the american “freedom of speech” concept. Recently, Nikolay Storonsky, the CEO of Revolut also compared BTC with gold.
FAO: So, if I read this well, the global head of commodities research for Goldman Sachs Group says his boss doesn’t understand Bitcoin…right?
Currie said: “I don’t see why there is all this hostility to it” – well better ask your superior then…
Arjun Kharpal – CNBC
Cryptocurrencies have a high chance of being worth trillions of dollars in the future, according to one top venture capitalist. Albert Wenger, partner at Union Square Venture said there is “irrational exuberance” in the cryptocurrency market, but in the long term, the value of these digital coins could go higher.
Arjun Kharpal – CNBC
Bitcoin’s rise could help lead to the creation of a so-called “decentralized internet” that could take power away from large technology firms, two venture capitalists said.
Hemant Taneja, managing director at General Catalyst: “The underlying reason for cryptocurrencies is about building a decentralized internet. And I think that’s a profound reason”
Albert Wenger, from Union Square Ventures, echoed the sentiment, but admitted that reducing the power of internet giants is a long way off.
Jamillah Knowles – Reuters
Nearly half of the cash that has poured into newly issued cryptocurrencies in recent years has been raised in Europe.
FAO: This is encouraging. Also, looks like Switzerland drew in almost half of Europe’s total, through companies based in Zug, aka the Crypto Valley.
Evelyn Chang – CNBC
US regulators approved plans for bitcoin derivatives to be traded on two major officially regulated international exchanges for the first time (Ed. note: Chicago Mercantile Exchange and Chicago Board Options Futures Exchange). Until now, the only regulated exchange for bitcoin trading was LedgerX, a small US options exchange.
DNT: OK, BTC is officially mainstream!
FAO: That went smoothly, as expected. Here’s the statement published by CFTC.
But wait, there’s more:
– not surprising – Nasdaq announced its plans for Bitcoin Futures on its NFX market next year – more here, via Straits Times
– not surprising either – the Central Bank of Russia has banned Moscow Stock Exchange to start the trade of Bitcoin Futures – more here via Bitcoin.com
– although it didn’t announce a date for its Bitcoin Futures launch yet, CBOE pushes even further by mentioning plans for Ether and Bitcoin Cash Futures – more here, via Business Insider. Well, let’s say this move could easily be anticipated.
Now really, clearly you do not think everything stops here, right? If Bitcoin Futures proves a success a whole new asset class will emerge soon – remember the statements of Leo Melamed, Chairman Emeritus of CME Group – last month.
John Detrixhe, Joon Ian Wong – Quartz
Though many financial heavyweights are skeptical of cryptoassets, the decision may help tame the unruly market.
FAO: Ha! This is only the beginning!
Victor Golovtchenko – Finance Magnates
Traders of cryptocurrencies that are using Coinbase are experiencing difficulties accessing their accounts and executing market orders. While another Silicon Valley exchange, Kraken, is known to have experienced major issues in recent weeks during volatile times, the service outage at Coinbase for some clients is news.
FAO: Question: if global exchange players are joining the “cryptoverse”, could the current crypto-exchange leaders handle the outcome? Can they survive? The latest volumes are proving a bit difficult to “swallow”, let’s put it mildly.
John Koetsier – Forbes
“All currencies will be digitized,” Bitt founder and director Gabriel Abed said. “Cash has seen its days.”
Joe Easton – Bloomberg (subscription)
NEX Group Plc CEO Michael Spencer, one of London’s best-known financial figures, said he sees bitcoin perhaps reaching $20,000 “but at some point it is going to go back — a hell of a long way back — down.”
FAO: “What goes up must go down” kinda comment. Yet, NEX has a lot of plans in this direction.
Joel Rosenblatt – Bloomberg (subscription)
Coinbase lost a bid to block an Internal Revenue Service investigation into whether some of the company’s customers haven’t reported their cryptocurrency gains.
FAO: You can check our Archive if you want to know more about the previous rounds of this fight.
Leonhard Weese – Forbes
Once accounting for over 90% of Bitcoin’s global trading volume, the “big three” Chinese Bitcoin exchanges OKCoin (and its subdivision OKEx), BTCC and Huobi now only account for roughly 7% of market volume, according to Coinmarketcap.com. None of the exchanges still trades a BTC/CNY pair, and accounts can no longer be funded or defunded with Chinese Yuan.
Via Finance Magnates – Coinbase hires Saxo Bank Director Asiff Hirji as President and COO.
Rachel McIntosh – Finance Magnates
The latest draft of a bill currently being passed through the Mexican senate includes provisions to develop a legal framework that will allow Mexican banks to store cryptocurrencies. The bill, which is colloquially known as the “Fintech Law”, has also been expanded to provide a framework for electronic payment-processing companies to process cryptocurrency transactions.
Nolan Bauerle – CoinDesk
FAO: Today’s must-read!
Jon Evans – TechCrunch
DNT: Is Bitcoin an emotional subject? Does it have a future? Read this excellent analysis to find out!
Jeremy Wagstaff, Byron Kaye – Reuters
Police and security agencies have so far only taken an interest in blockchain for tracking criminals hiding illegal money from banks.
Kevin Harris – Forbes
DNT: An interesting interview with Johnny Steindorff, the man who launched in 2014 one of the first pure play crypto funds, named Focus.
Sifting the Yukon river for gold was a waste of time for most of the 100,000 prospectors seeking to make themselves rich in the 1890s. The same can be said of the bitcoin miners who dream of striking it rich by getting their hands on some of the extremely lucrative and painfully elusive electronic currency.
DNT: But some of them already made, if not billions, some millions. 🙂
FAO: Florin Adrian Oprea, Editor-in-chief Blockchain Daily News
DNT: Decebal Nicolaie Todarita, Editor Blockchain Daily News