by Florin Oprea
Allie Conti – Vice
As CNBC reported Monday, citing an Alabama securities regulator, people are actually taking out mortgages to invest in Bitcoin, perhaps hoping to turn $20,000 into their entire retirement fund. Meanwhile, the phrase “buy Bitcoin with credit card” was at least recently trending on Google. These are tempting gambles given that pensionless people (a.k.a. millennials) run the risk of spending all their savings before they die. But are they ones you should take?
FAO: Yeah, DON’T! We also addressed this topic yesterday.
Jill Disis – CNN Money
Janet Yellen on Wednesday called the cryptocurrency a “highly speculative asset.”
“It is not a stable source of value, and it doesn’t constitute legal tender,” she told reporters at her last press conference as leader of the central bank.
FAO: Said what? Called bitcoin an asset? I recall the Bank of France Governor, Francois Villeroy de Galhau, also declaring earlier this month: ‘It is a speculative asset. Its value and extreme volatility have no economic basis, and they are nobody’s responsibility,’
Oh, and Leo Melamed, Chairman Emeritus of CME, which are currently preparing to launch bitcoin futures on Monday, said last month that bitcoin is likely to become a new asset class in its own right.
So, then, it’s all clear now, bitcoin is an asset.
Chloe Cornish – Financial Times (subscription)
John Detrixhe – Quartz
Overstock.com’s share price has surged more than 200% this year, propelled by a heady mix of online retailing, cryptocurrency mania, and a CEO who is openly considering offers for the business. CEO Patrick Byrne told the Financial Times (see above) that selling Overstock would provide enough capital to fund a non-profit enterprise, called De Soto Inc., that would use blockchain technology to protect informal ownership records.
FAO: What’s that famous phrase: “buy low sell high”? Oh, I’m just saying…
Nathaniel Popper – NY Times
John Biggs – TechCrunch
Indiegogo is now offering an ICO service alongside its partner, MicroVentures. The company will allow users to participate in SEC-complaint ICOs and will pick and choose startups that match certain exacting criteria.
FAO: You don’t say.
Stan Higgins – CoinDesk
Blockchain startup Colu has secured $14.5 million in new funding from Israel’s IDB Group.
The investor contributed the funds both toward the company itself as well as the token presale for its Colu Local Network (CLN), which it unveiled last month.
Fitz Tepper – TechCrunch
Last month Bitwise Investments announced a passively managed index fund comprised of the top 10 cryptocurrencies by market capitalization. The fund rebalances once a month, and all assets are held in cold storage.
FAO: Investors included: Khosla Ventures, General Catalyst, Naval Ravikant, Elad Gil and others. Check their press release here.
Frank Chaparro – Business Insider
Nour Al Ali – Livemint
Jemima Kelly, Anna Irrera – Reuters
The latest outages show how the market infrastructure for an immature and volatile instrument that millions of investors have piled into may be ill-equipped to cope with sudden shifts in demand, which is worrying some investors.
FAO: The topic was previously touched by other media outlets and commented by us (use our FREE ARCHIVE). This issues were highly anticipated. Right? So then, what’s the solution?
Stephen Gandel – Bloomberg Gadfly
The future of hedge funds is starting to look like there will be fewer managers. That doesn’t mean there will be fewer funds.
Justina Lee – Bloomberg
Two largest ICOs yet are by companies co-founded by women.
Arnab Shome – Finance Magnates
Japanese and South Korean banks have announced that they will begin the anticipated testing the blockchain technology with US blockchain development firm Ripplenet this Friday.
FAO: In case you were wondering why XRP jumped so HIGH yesterday…here’s why.
Eun-Young Jeong & Steven Russolillo – Wall Street Journal (subscription)
South Korea on Wednesday said it will consider taxing capital gains from trading of virtual coins, a government statement obtained by Reuters ahead of an official release showed.
The government will also ban minors from opening accounts on virtual coin exchanges, and propose a bill to allow only eligible exchanges to operate.
FAO: M’yeaaah. As Ben Franklin used to say – there were only two things certain in life: death and taxes. Seems he was so right…
Nupur Anand – Quartz
Officials are investigating several bitcoin exchanges across the country, including in Mumbai, Bengaluru, Pune, Hyderabad, and New Delhi, Surabhi Ahluwalia, spokesperson for the tax department, told Reuters on Dec. 13. “We are looking at collecting information about (the) modus operandi of bitcoin exchanges, investors, their source of investment and possibility of collecting tax,” Ahluwalia said.
FAO: If you can’t stop them, tax them.
Alicia (Lucy) Cameron & Kelly Trinh – The Guardian
The Bitcoin market is only just maturing as an investment and the underlying value of the cryptocurrency is still unknown.
Charley Grant – Wall Street Journal (subscription)
Investors are flinging cash at bitcoin because the price is going up and because they believe it could be the currency of the future. Investors are flinging cash at The Crypto Co. because bitcoin is going up.
Mark Grant – Bloomberg
Economically, sovereign debt yields make no sense and the reckoning may soon be at hand.
Olga Kharif – Bloomberg
Lenders now offer loans with digital coins as collateral.
US Depository Trust and Clearing Corporation CEO Mike Bodson has poured cold water on some of the wilder hopes of distributed ledger technology cheerleaders, arguing that while DLT might represent the future, it is far from ready for primetime.
Richard Peterson – MarketWatch
I can tell you about the psychology driving bitcoin prices into bubble territory.
FAO: Florin Adrian Oprea, Editor-in-chief Blockchain Daily News
DNT: Decebal Nicolaie Todarita, Editor Blockchain Daily News