by Florin Oprea
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.
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…
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.
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…
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…
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.
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, 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.
Stan Schroeder – Mashable
A fake version of popular wallet for cryptocurrency Ethereum, MyEtherWallet, is currently being sold in Apple’s App Store.
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.
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.”
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.
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…;)
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.
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?
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.
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”…
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