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President Trump said he’d consider changes to a cap on the federal deduction for state and local taxes, one of the most divisive provisions of the 2017 Republican tax overhaul.
Trump told regional newspaper reporters in response to a question Wednesday that he’s “open to talking about” revisions…
Institutional investors trading cryptocurrency gained ground in 2018, with a number of high profile players edging in and taking a seat at the table. Increased interest from larger investors may have played a part in supporting digital assets as well as distorting the market.
Will Crypto Markets Turn Bullish Again in 2019?
Last year, reports emerged that George Soros and the Rockefeller family were beginning to take positions in the emergent crypto asset class, according to Bloomberg. The family’s $ 26 billion Soros Fund Management was supposedly considering trading digital assets. The Rockefeller family’s VC arm, Venrock, decided to take a different approach by partnering with Coinfund to assist entrepreneurs in launching blockchain businesses.
Mike Novogratz, the chief executive officer of Galaxy Investment Partners, said he sees Q1 and Q2 2019 as a period when more institutions will start to come into crypto. He also expects the crypto markets to turn bullish again in 2019.
Crypto Is Not a Playground Anymore
Stefan Neagu, co-founder of digital identify management system Persona, said: “BTC attracted large players, as the institutional investors saw BTC as an investment instrument. This helped the crypto market because it was not a playground anymore, but rather the sandbox of a limited group of people with money from a real economy being shifted to the crypto market.”
In 2018, over-the-counter (OTC) market makers have thrived, with many institutional traders shifting to OTC. Etoro announced that it had opened an OTC platform for institutional buyers and Coinbase and Hodl Hodl launched OTC desks in November.
According to cryptocurrency research group Diar, institutional cryptocurrency trading on traditional exchanges has been diminishing in volume due to BTC being welcomed into major outfit portfolios this year. There has instead been a shift to OTC trading.
During OTC market hours, there has seen an increase in BTC trading volume by 20 percent, while Grayscale’s Bitcoin Investment Trust (GBTC) volumes were down 35 percent in 2017 vs. 2018 for the same period. It seems institutional traders might be shifting towards higher liquidity OTC physical BTC markets.
Liquidity Issues and Susceptibility to Manipulation
Another issue with the cryptocurrency market is low liquidity and its susceptibility to manipulation. The increased entry of institutional investors may have helped anchor the current market and distort prices.
Neagu said: “I doubt that this [increased institutional investor] interest will cause liquidity issues. I don’t see any reason why the crypto market should be different than the stock market. As for distorting the prices, I don’t think that they would see any big ripples.” He added: “Let’s remember that the Mt. Gox trustee sold $ 230 million worth of BTC in four months, and they did it using exchanges, not OTC desks. For the moment, the “weight” of these institutional players is not that big to send the BTC price down.”
Hong Kong Crypto Regulations Favor Institutional Investors
In Asia, Hong Kong’s Securities and Futures Commission (SFC) has introduced new rules which limit crypto trading to institutional investors. Licensed portfolio managers and funds that invest more than 10 percent of their portfolios in virtual assets are required to obtain a license which means only qualified institutional investors will be allowed to invest in virtual asset portfolios.
Roger Lim of Singapore-based NEO Global Capital (NGC) explains that crypto regulation in East Asia are still fragmented. However, further regulation will drive both governance and the mainstream adoption of cryptocurrencies.
Lim said: “As institutional investors, high net worth individuals, and family offices continue to monitor and take cryptocurrency seriously, and with regulators working to improve standards and guidelines for adoption, I expect that the market will mature in parallel. If the industry can continue to shift gears and direct its attention towards this narrative of growth, I think it’s very likely that we will see a comeback in 2019.”
Crypto Custody Issues Must Be Addressed
Cryptocurrency custody lies in safeguarding crypto assets. Scarcely a month goes by without an exchange hacking, funds being lost, stolen or compromised, with little hope or possibility of recovery. It is in the interest of any financial institution holding assets for another party to lower the risk of theft.
According to the Bank of New York Mellon, there is increasing demand in the market for a traditional, established custodian to provide custody of cryptocurrencies. There have been a number of firms launching services to secure assets and there have been reports of major banks testing and in some cases rolling out crypto custody solutions. Nomura and Intercontinental Exchange have announced plans, and sources state that other major banks such as J.P. Morgan, Goldman Sachs, and Bank of New York Mellon are exploring offerings. Introduction of custody would also unlock large amounts of capital, blogs Tom Shaughnessy, founder of 51percent Crypto Research.
Coinbase has received approval from New York regulators to form a custodial firm for cryptocurrencies. Previously, CEO Brian Armstrong has acknowledged this issue stating that there is $ 10 billion of institutional money waiting on the sidelines and that the number one issue preventing these individuals from getting involved is the lack of secure custodial services.
Will we see more institutional investors entering crypto in 2019? Let us know in the comments section below.
Images courtesy of Shutterstock.
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The post How Institutional Investors Are Changing the Cryptocurrency Market appeared first on Bitcoin News.
The Arctic is experiencing a multi-year stretch of unparalleled warmth “that is unlike any period on record,” according to the 2018 Arctic Report Card, a peer-reviewed report released Tuesday morning from the National Oceanic and Atmospheric Administration, an agency within the United States Department of Commerce.
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China is strongly protesting the arrest of a technology exec who was detained while changing planes in Canada. Meng Wanzhou is Huawei’s chief financial officer and daughter of the company’s founder, the BBC reports. Canadian authorities say she was being sought for extradition to the US, where the company is…
Aly Raisman and her Team USA teammates are heroically disrupting a dangerous belief system that athletes must blindly trust their coaches and doctors — so says fellow Olympian Adam Rippon. The Team USA figure skating star says he’s so proud…
Developer Gabriel Cardona was personally recruited to fast track development of Bitcoin Cash (BCH). Open source, full featured development kit, Bitbox, his creation, has taken the community by storm, and it is now part of the Bitcoin.com developer universe. Money, Mr. Cardona likes to say, is critical to the human condition. And BCH and its blockchain are enabling financial sovereignty in a way which, he believes, is unique in history.
Also read: Report: 15,000 Twitter Crypto Scam Giveaway Bots
Developer Gabriel Cardona Seeks a Path to Change the World Through Bitcoin Cash
This week, developer Gabriel Cardona was guest for a full hour on the Vin Armani Show. At about the one hour and eight minute mark, Mr. Cardona began to lay out reasoning behind the burst of innovation in development on the Bitcoin Cash blockchain.
With hotshot initial coin offerings ringing-in billions, venture capitalists pouring money into project after project, and nearly all crypto talk dominated by speculative price analysis, idealism is hardly ever mentioned. There is almost a sense of innocence lost, having given way to strange corporate realism. When idealism is employed, derision and condescension aren’t too far behind nowadays. Mr. Cardona, however, champions bitcoin cash as “the soundest money the world has ever known. As a developer you can make it available to all people, whatever their age, gender, nationality or financial status,” he explained to Vin Armani, founder of Coin Text, the text messaging way to send BCH without an internet connection.
Mr. Cardona describes himself, 37, as a decidedly different person professionally, “a whole different frequency” only ten years ago. He spent most of his twenties vagabonding, playing music, traveling. Becoming a father around this time sobered him to clearer thoughts about a career going forward. A chance community college course led to his first project, then another, and another. For whatever reason, the web has always resonated with him. The ubiquity, the chance to be impactful on a large scale, appealed to Mr. Cardona professionally.
That professional path eventually led him to code for Walmart, Target, Taco Bell, and to Triple A — all web development projects. Somewhere along the line, 2012 ish, he discovered bitcoin and Gavin Andresen’s Faucet, where Mr. Cardona received five bitcoin. This kept him interested as he went about his regular career. In fact, he’d put the idea aside for years while keeping an ear and eye to key hacker news outlets. When talk about a fork in mid 2017 was heating up, Mr. Cardona described the inevitable as not optimum, certainly, but ultimately the right path when two factions just cannot agree.
From there he deduced one of the chains would eventually have an innovation explosion. When he was able to access bitcoin cash (BCH) coins, and he started to use them, it suddenly grabbed him completely: this is bitcoin, the tech that made a great many wonderful people fall in love. Still, he wasn’t yet convinced enough to enter the space in any permanent way. In fact, he took to the burgeoning 3D printer industry. Upon looking more deeply into smart contracts, he encountered Ethereum’s Truffle Suite. He describes this as a revelation.
It was shocking. Nothing like a good framework, a suite of abstractions, allowing developers to work ten times faster existed for Bitcoin. There wasn’t anything like it in the BCH space. With that realization, he coincidentally took some time off to try and “have the vision.” It’s this kind of talk that makes Mr. Cardona so compelling. Devs are not known for their ability to communicate vulnerabilities, to be, well, human. Mr. Cardona has that in spades.
That in-touch-ness no doubt sets him apart. He’s humble enough to know he needs mentors, guides, to help check himself along the way. Enter Pete Flint, 44, a British entrepreneur now based in San Francisco at the venture capital firm, NFX, where he is a managing partner. Mr. Fint is perhaps best known for having been founder and CEO of Trulia, which he eventually sold for something like a billion dollars. Mr. Cardona worked there for a spell, and the two hit it off. On his break to “have the vision,” he met up again with Mr. Flint.
That was half a year ago. Mr. Cardona credits Mr. Flint with urging him to move from hardware to software, and onto to BCH solutions. That very night Mr. Cardona began working on a library that morphed into framework, and has now become the solution platform, Bitbox. An immediate success, having been downloaded tens of thousands of times in a very short period, Bitbox got the attention of nearly everyone in The Know. Two months ago he joined Bitcoin.com to put Bitbox into full-on practice. For the un-technical, Bitbox assumes many functions every dev needs, thus speeding up a project’s process, allowing innovation to come at much faster paces. The implications for its power are simply mind-blowing. As Vin Armani commented during the interview, had something like Bitbox been available as little as three years ago for Bitcoin, everything would’ve changed. That it’s now an intimate part of BCH means the future of money is on a Cardona path.
Is the pace of innovation on the BCH chain surprising? Let us know in the comments section below.
Images via Pixabay, Vin Armani.
The post Bitcoin’s Return to Innovation: Changing the World Through Peer-to-Peer Electronic Cash appeared first on Bitcoin News.
Last week Nic Carter, the partner at Castle Island Ventures and co-founder of Coinmetrics.io, published an interesting study that looks at the ever-changing narratives tied to Bitcoin technology. Carter and his fellow researcher Hasufly scraped up a lot of data stemming from Bitcointalk.org posts over the years that highlight some of the community-derived visions of what Bitcoin should be and how these visions have changed over time.
The Ever-Changing Bitcoin Narratives
If you’ve been into cryptocurrencies for a long time you might have noticed the community narratives and visions for Bitcoin have changed over the years. For instance, back in the early days, Bitcoin technology was supposed to eradicate the current banking cartels and remove money from the state’s power as well. At least that’s what the early bitcoiners and cypherpunks said at the time. However, Bitcoin narratives have evolved and lots of Bitcoin proponents now want the central bank’s acceptance and think governments regulating the use of cryptocurrencies will make them a ‘legitimate’ form of tender. Moreover, some people believe Bitcoin should be a store of value much like gold, while others believe Bitcoin was meant to be a fast and cheap peer-to-peer cash system.
After researching this topic, Nic Carter published a well-documented study of the ever-changing narratives stemming from individuals and groups who like to tether their own visions to the Bitcoin protocol. Carter and his partner Hasufly used data derived from conversations taking place on the forum Bitcointalk.org over the last decade.
“Perhaps the most enduring source of conflict within the Bitcoin community derives from incompatible visions of what Bitcoin is and should become,” explains Carter’s study.
In the absence of a recognized sole leader, Bitcoiners refer to founding documents and early forum posts to attempt to decipher what Satoshi truly wanted for the currency. This is not unlike US Supreme Court justices poring over the Constitution and applying its ancient wisdom to contemporary cases.
Isolated and Incompatible Visions
Carter and Hasufly’s research breaks Bitcoin narratives down to seven sections which includes: “The e-cash proof of concept (the first major narrative), cheap p2p payments network, censorship-resistant digital gold, private and anonymous darknet currency, reserve currency for the cryptocurrency industry, programmable shared database, and an uncorrelated financial asset.” After assessing each narrative the team created a chart that shows each narrative’s popularity over time.
Moreover, Carter takes the study further by isolating certain narratives that have seem to be “entirely incompatible.” One example is the cheap P2P payments network versus the digital gold vision, which in turn caused the Bitcoin community to split in August of 2017. Further, Carter notes that the anonymous private vision of the Bitcoin protocol is very different than the transparent blockchain narrative bolstered by a lot of individuals.
“The anonymous and fungible vision of Bitcoin is somewhat at odds with the financialised, transparent version which is growing in popularity,” Carter explains.
Individuals that want exposure to Bitcoin the financial asset tend to prefer a Bitcoin which is compatible with AML/KYC and tend to put a lesser emphasis on privacy or fungibility. Many pundits believe this will be the next bitter fight for the soul of Bitcoin.
Carter’s Study Suggests That It’s Appropriate to Change and Acknowledge Different Visions in Response to New Data
The authors of the study say they are aware that the analysis relies heavily on the researcher’s own interpretation of old forum posts. Carter says they are open to an alternative metric if someone wants to suggest it to them for further analysis.
“We’re not positing our analysis as the absolute truth. Instead, we want to nudge Bitcoiners away from absolutism and acknowledge that major narratives within the Bitcoin community have changed over time — And that’s ok — it’s appropriate to change your mind in response to new data,” Carter concludes. Check out Carter’s entire analysis called “Visions of Bitcoin” here on Medium.
What do you think about the analysis of different Bitcoin visions over time? Do you think that they will continue to change or one narrative will be settled on? Let us know what you think about this subject in the comment section below.
Images via Pixabay, DC, and Nic Carter’s Medium Post “Visions of Bitcoin.”
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The post Study Provides an Interesting Look at Changing Bitcoin Narratives appeared first on Bitcoin News.
President Donald Trump said Friday that European leaders “better watch themselves” because immigration is “changing the culture” of their societies.
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My husband, Kent, and I believe that practicing daily, ordinary, Christian hospitality is worth the cost–even if it doubles our grocery budget (or sometimes triples it!).