Blockchain Daily News – Edition 116, 18.12.2017
December 18, 2017
Blockchain Daily News – Edition 118, 20.12.2017
December 20, 2017

Blockchain Daily News – Edition 117, 19.12.2017

Blockchain Daily News

by Florin Oprea

Edition 117, 19.12.2017

Deals, Investments & M&As

Bitcoin Is Challenging The Entire Concept Of Venture Capital

Joshua Brustein – Bloomberg (subscription)

The cryptocurrency craze is leading to some novel tactics from prominent tech investors.

Philipp Sandner, Frankfurt School Blockchain Center: True. Smart contracts can be turned to be venture funding contracts. Similarly, blockchain and smart contracts can potentially also disrupt asset management as whole, not just the specific segment of venture capital.

Cryptocurrencies

Estonia To Launch Its Own Cryptocurrency

Arnab Shome – Finance Magnates

The government of the tiny Baltic nation Estonia further advanced along its path towards launching a state-sponsored cryptocurrency to integrate the booming crypto economy into the country’s mainstream economic system.

FAO: So Estonians haven’t abandoned their dreams (discussed this summer)…even if Super Mario shot down this theoretical idea in September. Let’s see what happens…

Central Banks Could Hold Bitcoin & Ether For The First Time In 2018

Arjun Kharpal – CNBC

Global central banks will start holding digital currencies in the next year, the chief executive of a cryptocurrency wallet platform said.

I think this year will be the first year we start to see central banks start to hold digital currencies as part of their balance sheet,” Peter Smith, CEO of Blockchain.

FAO: Who said they aren’t currently holding BTC and ETH? Just saying…

Cryptocurrencies Could Be Worth $1 Trillion In 2018

Arjun Kharpal – CNBC

The total value of all cryptocurrencies in the world will hit $1 trillion in 2018, predicts Peter Smith, CEO of Blockchain.

FAO: Considering other previous predictions, Smith’s is quite a modest one…more in our FREE ARCHIVE.

Exchanges & Trading Venues

How Stock Exchanges Are Utilising Blockchain Technology

John Manning –  International Banker

It’s not just the banks that are rapidly boosting their exposure to blockchain; stock exchanges all around the world are now exploring how best they can leverage the technology, invariably as a way to improve costs and efficiency, and to lower risks and tighten security.

FAO: Good roundup of global exchanges implementing blockchain solutions for their cash markets. Discusses plans of Nasdaq, Nasdaq Tallinn, Moscow Exchange, London Stock Exchange, Santiago Stock Exchange, and of course Australian Securities Exchange, which earlier this month announced they will replace its settlement and clearing system (CHESS) with blockchain technology.  

Vendors

Firms Stockpile Bitcoin To Pay Hackers’ Ransoms

James Dean – The Times (subscription)

Companies are opening bitcoin accounts and stockpiling the digital currency to pay off hackers who demand ransoms, experts have said. Firms are buying the currency because they are wary of ransomware that wipes data from computers if victims fail to pay a bitcoin fee to attackers.

FAO: This was a record year for hackers also. Check our FREE ARCHIVE to find out how “productive” they were.

BitPeople

Emil Oldenburg, The Swedish Co-founder Of Bitcoin.com Has Sold All His Bitcoins

Tom Turula – Business Insider

Bitcoin is “as good as useless” and has no future as a tradeable currency says Emil Oldenburg, the co-founder and CTO of bitcoin.com, one of the world’s largest bitcoin websites. Oldenburg has sold his bitcoins and believes others will do the same when they realize how illiquid the market is.

FAO: Short BTC, long BCH…

Bill Miller’s Hedge Fund Has Half Its Money In Bitcoin

Evelyn Chang – CNBC

“It’s just about 50% right now,” Miller said regarding his MVP 1 fund on the WealthTrack podcast with Consuelo Mack  released last week.

FAO: If “right now” was last week means this week the BTC holding could be anything from 0 to 100%, right?

Regulation

French Finance Minister Calls For Bitcoin Regulation Debate At G20

Reuters Staff – Reuters

France will propose that the G20 group of major economies discuss regulation of the bitcoin virtual currency next year, Finance Minister Bruno Le Maire said.

FAO: Is it me or are the French pushing even faster towards crypto-regulation? Last Friday (reported yesterday) the EU agreed a clampdown on virtual currency platforms to tackle money laundering.

DNT: It’s not just you. This is indeed happening…

How Should India Regulate The Ticking Time Bomb Called Bitcoin?

Rishabh Sinha and Nehaa Chaudhari – Quartz

Since 2013, the Reserve Bank of India has periodically reiterated its concerns over cryptocurrencies but has done little else. Unlike its counterparts elsewhere who have banned or otherwise severely restricted the use of cryptocurrencies, the RBI’s studied silence is arguably progressive in nature, letting the technology play out in the market while the stakes are relatively low.

Singapore’s Fintech Chief, Sopnendu Mohanty, Warns On Bitcoin Delusion

Ambrose Evans-Pritchard – The Telegraph

Sopnendu Mohanty, Fintech chief for Singapore’s monetary authority said there was a crucial difference between Bitcoin and rival crypto-currency Ethereum, but it is far from clear whether either improves day-to-day transactions or has much potential as a tool for central banking.

FAO: Hmmm…What are they up too? Singapore is currently one of the crypto-friendliest states in the world. Of course, warnings can be useful. Remember there are people taking out mortgages to invest in Bitcoin, which is by far the dumbest thing to do, imho…

CFTC Launches Online Resources For Bitcoin Investors

Wolfie Zhao  – CoinDesk

CFTC unveiled its new cryptocurrency resource website, which is aimed at educating the public about these wholly digital commodities. The site features links to a range of CFTC releases, including an October primer from its LabCFTC arm and information about futures launches from firms like Cboe and CME Group.

Want To Launch A Disruptive Blockchain Startup? First Find A Sympathetic Regulator

Trevor Clawson – Forbes

“Because this is all new, most regulators don’t understand, “ says Olga Feldmeier, CEO of blockchain startup, Smart Valor.”Those regulators that do have the knowledge will enable the creation of crypto-finance hubs.”

Startups, Accelerators & Hubs

Overstock Is Turning Into A Bitcoin Tech Company

Aaron Smith – CNN Money

Patrick Byrne, who runs Overstock.com launches a $250 million ICO to raise funds to reshape the business. That figure would just about match the largest ICO to date.

FAO: Patrick Byrne’s Overstock.com will launch the $250m ICO of its own platform, tZero. Byrne has even advanced the idea of selling his business, quitting retail and going full crypto – more here.

Analysis

Bitcoin Mania Lifts Rival Coins to Record Highs

Joanna Ossinger – Bloomberg (subscription)  

Ether and litecoin, the second and fourth biggest cryptocurrencies, have surged to all-time highs amid the optimism that bitcoin futures will attract institutions to the fledgling market.

Watch Out For A Correction In Bitcoin After A Parabolic Rise

Daryl Guppy – CNBC

The key problem with bitcoin and other cryptocurrencies is that they are fiat currencies in the true sense of the word. A fiat currency relies on investors confidence for its value. A fiat currency is not backed in gold or some other asset. Most world currencies are fiat currencies, but they are backed by sovereign states. It is rare for a sovereigns States to default on debt which in turn leads to currency collapse.

DNT: …comparing cryptos with fiat currencies is a little too much, don’t you think? Even if they are not backed in gold.

 

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

DNT: Decebal Nicolaie Todarita, Editor Blockchain Daily News