Blockchain Daily News – Edition 112, 12.12.2017

Blockchain Daily News

by Florin Oprea

Edition 112, 12.12.2017

Fans’ Section

Deutsche Bank Economist Torsten Slok Says A Bitcoin Crash Would Endanger Global Markets

David Z. Morris – Forbes

Torsten Slok, Deutsche’s Bank’s Chief International Economist thinks a crash in the price of bitcoin will be among the top risks to broader markets in 2018. He recently sent clients a list of 30 market risks which could impact growth next year. The list, shared with outlets including Bloomberg, ranks a bitcoin crash as the 13th-highest risk, behind various central banking challenges and overvaluation of U.S. equities.

DNT: Hmm, he might be right…The implications of BTC rise are deeper than it looks at first sight..But, luckily, now we have futures contracts. And I’m not referring at the speculative aspect but to the  protection of investments through these contracts.

FAO: Hmmm, position no. 13 from a total of 30…so then it’s not that bad, right? Draw your own conclusions…Saxo Bank recently published its “outrageous predictions” for 2018. Have you read what they say about BTC? Here’s a link.

2017: The ‘Butt’ Of Bitcoin’s Joke

David Gerard – CoinDesk

The bitcoin world is relentlessly optimistic, in the face of all news, positive or … differently positive. It’s no surprise then that in 2017 anything called a blockchain was quickly used as evidence of the impending world domination of bitcoin. “Could” becomes “will” becomes “is” … even though “could” is a word that often means “doesn’t” and tends to end up meaning “won’t.”

DNT: A critical vision dressed in an interesting game of words…

A Lack Of Data, A Lack Of Rationality?

Paul Donovan – UBS

The bubble to end all bubbles continues. Cryptocurrencies only have value if accepted as currencies. However, they cannot be used for the most important transaction in an economy, and cryptocurrency supply can only rise and never fall (making them a poor store of value). To date, using cryptocurrencies requires (effectively) a simultaneous asset sale and purchase of goods or services.

FAO: Note that Paul Donovan is currently Global Chief Economist for UBS Wealth Management. Recently we had another guest from UBS in our Fans’ Section. Sergio Ermotti, UBS CEO. I “translated” his words back then:  Blockchain good, Bitcoin not necessarily bad…Then it’s no surprise that they are leading a blockchain data reporting pilot, and have the help of other major banks like Barclays, Credit Suisse, KBC but also of SIX, the Swiss stock exchange, and Thomson Reuters. The platform is built on Ethereum. More via this Reuters report.

Deals, Investments & M&As

ICOs On Record Pace Even With Crackdown

Olga Kharif – Bloomberg (subscription)

The boom in ICOs is showing few signs of abating even as U.S. regulators crack down on fraudulent digital-token sales and issue new warnings about risks to investors.

FAO: Let’s see: $3.67 billion raised in total, so far this year, with $1.38 billion in Q4 alone, which will surpass the $1.74 billion raised in Q3.  As I see this, more regs will soon emerge…

Cryptocurrencies

OilCoin, The World’s First Legally Compliant Cryptocurrency Backed By Oil

PRNewswire

OilCoin, a project led by a team including Commissioner Bart Chilton of the U.S. Commodity Futures Trading Commission announced the creation of the first legally-compliant digital currency based upon a physical asset. OilCoin will tokenize barrels of oil held in reserve with each token representing the value of one barrel. OilCoin’s asset support will provide global users of digital currency with a meaningful safe haven from cryptocurrency volatility. OilCoin’s public token sale is scheduled to begin in early 2018.

FAO: I smell an OilCoin futures contract coming soon, n’est-ce pas? Now that would be really fun to have…

DNT: And let the games begin…Guess in a few years we will have an altcoin on almost everything.

FAO: FDNCoin/BDNCoin? Why not…

The Hottest Cryptocurrency In China Is Not Bitcoin

Zheping Huang – Quartz

China’s cryptocurrency enthusiasts have been left out of bitcoin’s historic rally in recent months, thanks to the Chinese government banning ICOs in September and then shutting down all major domestic exchanges. But it didn’t take long for them to find something new to pour their money into. That turned out to be OneCoin, designed by Chinese tech company Xunlei. Since its launch in mid-October, OneCoin’s value has jumped dramatically in secondary markets—at one point more than 80-fold, according numerous reports.

Exchanges & Trading Venues

Bitcoin First Day At Chicago Exchange

9GAG (video)

DNT: This is absolutely brilliant..you can not miss it! Let me rephrase: you are not allowed to miss it!

FAO: Have to tell you, this made my day!

TradeStation To Support Trading Of Cboe’s Bitcoin Futures

Nasdaq

TradeStation, a Monex Group company and award-winning online broker-dealer and futures commission merchant announced that eligible futures clients can now trade the new Bitcoin futures contract being offered by Cboe.

FAO: Good!

Vendors

A Potentially Dangerous Ethereum Wallet Lurks In Apple’s App Store

Stan Schroeder – Mashable

A fake version of popular wallet for cryptocurrency Ethereum, MyEtherWallet, is currently being sold in Apple’s App Store.

DNT: Oopsss..

BitPeople

Why Wikipedia’s Cofounder Wants To Replace The Online Encyclopedia With The Blockchain

Leah Brown – Techrepublic

Many industries have adopted blockchain technology as a core part of their operations. It creates transparency and trust between parties so that trust is no longer needed, which is why industries such as real estate, finance, and advertising are beginning to use it. And now, Wikipedia’s cofounder Larry Sanger wants blockchain to replace the free online encyclopedia.

Regulation

Gibraltar Bill Passage Paves Way For Blockchain Regulations

Stan Higgins – CoinDesk

Lawmakers in Gibraltar approved a piece of legislation that advances the government’s broader plans for blockchain. Legislators cleared a bill that amends the British overseas territory’s Financial Services (Investment and Fiduciary Services) Act in order to “extend measures for the protection of investors to the customers of licensees carrying on controlled activities which are not investment services.”

Associations & Federations

Waves, IGF, ‎Ethereum And Deloitte Form Alliance To Regulate ICO ‎Industry

Aziz Abdel-Qader – Finance Magnates

Waves Platform announced the formation of a ‎self-regulatory body, an industry-led initiative to regulate and shape the responsible growth ‎of for ICOs and blockchain industry‏.‏ The focus of the new association is to provide reporting, legal, tax, ‎accounting, KYC and business due diligence standards to the token crowdsales and ICOs that have become a controversial cornerstone for blockchain startup funding.

FAO: Waves is developing Waves-NG, and aims to become the world’s fastest decentralized blockchain – more here.

Analysis

Investors Rotating Out Of Bitcoin And Into Ethereum, Litecoin

Josh Rudnik – Seeking Alpha

Investors are taking profits in Bitcoin and re-allocating to Ethereum & Litecoin.

Coinbase users have three choices of cryptocurrencies, and look to be re-allocating profits as opposed to converting back to traditional currencies.

FAO: Maybe they “don’t want to miss a thing”…Actually maybe Aerosmith’s lyrics could have been dedicated to cryptos – have a read…;)

Bitcoin Fees Are Skyrocketing

Timothy B. Lee – Ars Technica

The cost to complete a Bitcoin transaction has skyrocketed in recent days. A week ago, it cost around $6 on average to get a transaction accepted by the Bitcoin network. The average fee soared to $26 on Friday and was still almost $20 on Sunday.

Bitcoin: Does It Really Use More Electricity Than Ireland?

BBC

The internet has recently been awash with claims that the digital currency Bitcoin could be using more electricity than a number of developed nations. So Reality Check wants to know: how did they work it out, and is it true?

Other news

Could Bitcoin’s ‘Whales’ Manipulate The Market?

David Z. Morris – Fortune

Bitcoin was built by a tight-knit community of technology buffs and entrepreneurs, and a relatively small number of them own an outsized share of the cryptocurrency. As smaller investors enter the market, some are asking whether those “whales” are in a position to take advantage of the newcomers.

DNT: After we had two good stories on this topic in yesterday’s bulletin, we are back with this “BTC whales” issue as the subject looks pretty important and a lot of scenarios about how the market can be manipulated. Worth reading.

Opinion

Why Bitcoin’s Success Could Be Its Downfall

Benjamin A.T. Graham, Allison Kingsley – The Washington Post

Bitcoin backers argue that once digital currencies become widely used, governments will be unable to destroy them — users simply won’t allow it. This view falls short on two points. First, digital currencies, even in their current form, are a bigger threat to national governments than most people currently understand. Second, bitcoin’s success would also be its downfall. As bitcoin gains popularity, and especially if it stabilizes in value, it becomes a viable substitute for government-backed currencies. But national governments have little incentive to allow this type of direct competition.

FAO: Yeah, the governments “don’t want to miss a thing”…

What’s The Value Of Bitcoin? Who Knows

Justin Fox – Bloomberg

Unlike tangible gold and silver, digital currencies haven’t had hundreds of years to prove their durability.

FAO: Florin Adrian Oprea, Editor-in-chief Blockchain Daily News

DNT: Decebal Nicolaie Todarita, Editor Blockchain Daily News