by Florin Oprea
Mohamed A. El-Erian – Bloomberg (subscription)
Instead of bringing clarity, an impressive price surge last week accentuated the differences within the financial industry about the future of the bitcoins. Opinions range from those asserting that we are witnessing the birth and maturation of a new global currency to those who argue that the phenomenon is a “fraud,” with a large middle either reserving judgment or arguing that it will last but currently may risk being in the midst of a speculative price bubble.
FAO: Here’s El-Erian, again! He’s is quite busy stating his position on Bitcoin – last week he brought in arguments on why Bitcoin is not a currency, but a commodity. What he emphasizes in today’s piece is “Blockchain good, Bitcoin bad”, like many other in the industry…Well, let’s see, he predicts Bitcoin will eventually fall…Newsflash: it already happened, several times in the past, it will happen again! But I think the USD or the Dow have experienced aggressive price corrections several times in the past as well…n’est ce pas?
DNT: As long as “the big ones” in financial markets will feel threatened by cryptos, and in the context in which they don’t want to lose the dominant position which offers them authority and control, this “war” of statements will continue.
Tony Yoo – Business insider
Blockchain security startup HCash, which is developing its technology in conjunction with Melbourne’s Monash University, has revealed to Business Insider that the round closed on July 15. Based on that day’s exchange rate, the 21,000 Bitcoins were worth $53 million.
JD Alois – Crowdfund Insider
CoinList has announced their second ICO, Blockstack, is now open for registration. If you are interested in participating in this investment opportunity, you must register by November 10th to guarantee your allocation. After November 13th, allocations will be distributed on a first come, first served basis.
FAO: The first ICO on CoinList’s platform was Filecoin’s, which raised $205m! More about Blockstack – here.
Evelyn Cheng – CNBC
Goldman Sachs expects bitcoin will hit new records, despite a roughly $600 drop in the digital currency from all-time highs.
DNT: Why not $8,000?.
FAO: Speaking of Goldman Sachs, we had their group CEO, Lloyd Blankfein, yesterday. Surprisingly, even if he comes from the very heart of the financial industry, his “opinion” regarding Bitcoin is different from that of his “fellow” bankers. Last month Blankfein even tweeted (check this Bloomberg piece) that he’s “still thinking about #Bitcoin.” Is this a “bad cop, good cop” thing? Just saying…
Nupur Anand – Quartz
Crypto-currencies may be one of the most intriguing subjects in the world of finance right now but they have failed to impress India’s central bank.
“Our current position on bitcoins is that we will not be using it for any payments and settlements…though the technology underlying crypto-currencies will not end,” said S Ganesh Kumar, executive director of the RBI,
DNT: No kidding???? Do you want to still use blockchain? How convenient…Now, I pass the word to Florin who, i’m sure, that will analyze our Crypto-Teams…
FAO: Actually this won’t change our Crypto-Teams BDN Global Outlook as we have signaled India as a Team “Against” player months ago…
SIA and R3 have launched a strategic partnership aimed at speeding up the global development and adoption of blockchain applications by leveraging SIAnet’s 600 nodes provided to financial institutions, corporates and public administrations.
John Wasik – Forbes
Buffet: “You can’t value bitcoin because it’s not a value-producing asset…it’s a real bubble in that sort of thing.”
For those of you devoted to decoding Buffett’s every pronouncement, his meaning is clear: Cryptocurrencies are not tangible investments. They don’t generate earnings or pay dividends. How do you really value them if they have no intrinsic or “book” value? And people who buy bitcoin are simply betting that the price will go up.
FAO: What I see it’s a “clash of generations”…
Alyssa Hertig – CoinDesk
One of the most-anticipated bitcoin projects is planning a live network launch later this year. Startup RSK aims to soon go live with technology that will bring smart contract functionality to bitcoin in the form of an interoperable sidechain. According to RSK co-founder and chief scientist Sergio Lerner, with the formal launch, users will be able to use ethereum-like tools on bitcoin for the first time.
Elizabeth MacBride – CNBC
The lowest floor of the Emirates Towers in Dubai houses the government’s Future Foundation, which is sucking in innovative companies from around the world for a stint in the city’s $300 million accelerator program.
FAO: Remember Dubai wants to become first blockchain-powered government in the world by 2020.
JD Alois – Crowdfund Insider
Securities Commission Malaysia says it continues to lead digital innovation in finance with significant progress reported on major Fintech markets initiatives.
The regulatory agency’s strategy aims to enhance access to financing, increase investor participation, augment the institutional market, and develop synergistic ecosystems.
John Detrixhe, Jason Karaian – Quartz
Bitcoin’s price has risen by more than 600% this year, routinely setting new all-time highs along the way. But timing is everything: bitcoin has also dropped by double-digit percentages at times this year, in what some economists would consider a financial crisis if it happened to the value of a sovereign currency.
FAO: Every investor should read proper analysis before investing, and should be aware of the associated risks. The above short analysis should make you aware of the risks of crypto-investing. You have been warned!
Nathaniel Popper – The New York Times
Jamie Dimon has called Bitcoin a fraud and made it clear that he will not allow his bank to begin trading the virtual currency any time soon.
But that has not stopped a growing wave of big Wall Street investors — many of them hedge funds — from pouring their money into Bitcoin, helping extend an eight-month spike in its price.
DNT: Do you want two key words for the future of cryptos around the world? Yes? Here you go: hedge funds. Guess most of you well-informed techies and cryptocoins fans have a pretty clear picture of this.
A consortium including energy companies BP and Royal Dutch Shell will develop a blockchain-based digital platform for energy commodities trading expected to start by end-2018, the group said.
FAO: Florin Adrian Oprea, Editor-in-chief Blockchain Daily News
DNT: Decebal Nicolaie Todarita, Editor Blockchain Daily News