Each Bitcoin Could Be Worth $619047 In 10 Years

Cryptocurrency is the word which first comes to mind when talking about exotic investments. The question is: Is this really an exotic investment and how do we even define an exotic investment? The exotic investment brings up the memories of the great Tulip Mania in Holland, which died in 1637. Speculators paraded against the first stock back in the 1600s and here we are today looking at something that is bigger than that. Since the birth of Bitcoin in 2009 for half a cent, the price has hit the high of $4,477.

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Worried about the crash? Learn from NASDAQ

The general consensus among the investment community is that the price is in a mammoth bubble territory and it would crash. After all, we have witnessed a number of crashes in the equity market since its birth. The NASDAQ, the blue-chip index, experienced a massive crash on the back of the tech bubble when it fell by 78% in the 30 months ending 2002.

@Naeem23, Bloomberg

The tech bubble pushed the NASDAQ to its knees

The market has not only recovered from that level in the preceding years but it has made record highs, and to date, it is up nearly 26%. Just to put things in perspective, the NASDAQ index is up 486% from its tech crash low. For every trader, the NASDAQ tech crash became the child poster case study for graduate school but the reality is that crashes do take place all the time and in all markets.

@NaeemAslam23, Bloomberg

NASDAQ recovered 482% from its low

Why Crypto Is Here To Stay

Virtually every country in the world is after cryptocurrency. For illustrative purpose, there is more global audience force of attraction behind Bitcoin as compared to the largest stock market in the world, US.

There is a limited supply and the currency simply cannot be counterfeited. It is more than perfect for the new technological world. Consumers are shopping more on the internet and Bitcoin is competing with other currencies in this space. Given its massive popularity and availability across all continents, internet entrepreneurs are launching more products focused specifically on these markets. Consumers are switching from fiat money and banks to Bitcoin and this would only increase the demand. Volatility is High but Not for Long There is no denying that excessive up and down swings in Bitcoin is creating a lot of stir amid traders. Speculators are constantly moving in and out of their trades and this is one of the primary reasons that keep the volatility anchored. However, when you look at the recent price action, the price curve looks immensely anchored and this is primarily due to the capital inflow from Korea and Japan. In May 2017, the New York Agreement was declared with the intention to tackle the technical and political roadmap governance affairs. Australia is also set to regulate the virtual currency exchanges and this would result in more transparency and power for the Australian Financial Intelligence Agency.

Over time, we are going to get more products such as futures, ETF, options due to high demand and that would make the price more stable.

Important Events To Look Out

For this month, we are up nearly 64% and the race towards the 5000 mark is on. Potentially there are two important events that you want to keep a close eye on. Firstly, on the 22nd of August SegWit, the technological innovation would be put to test to carry out the first real world Bitcoin SegWit transaction. If all goes according to the plan, it would spur more confidence and it is more likely to attract new capital. On November 22, it will be nearly three months that SegWit will be activated and the New York Agreement road map has planned a Bitcoin hard fork which would result in double the block size.

Article source: https://www.forbes.com/sites/naeemaslam/2017/08/18/each-bitcoin-could-be-worth-619047-in-10-years/

Bitcoin bond launch brings digital currency step closer to ‘high finance’

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Bitcoin's market value tops that of Netflix


Bitcoin is getting closer to looking like a traditional financial product.

Japanese financial information firm Fisco announced Monday it is experimenting with the country’s first bitcoin-backed bond. The news follows other announcements in the last several weeks for bitcoin options, futures and an exchange-traded fund tracking bitcoin derivatives in the U.S.

“I think it’s a very healthy and natural progression of the space,” said Adam White, Coinbase vice president and general manager of its GDAX exchange, told CNBC in a phone interview.

Derivatives products will allow for greater liquidity, better price discovery and lower volatility, White said. “I think products like derivatives or an ETF effectively allow traders to do two things: speculate and hedge risk on the price speculation.”

Bitcoin price 12-month performance

Source: CoinDesk

Bitcoin has more than quadrupled in price this year, hitting a record above $4,500 Thursday and notching a market value of $74 billion amid growing institutional investor interest in the digital currency. Many governments and financial institutions see enormous potential for improving transaction security and efficiency using the blockchain technology that supports bitcoin.

But the surge in investor demand has also revealed access issues with third-party storage systems and trading platforms that fall short of the more established Wall Street markets.

Bitcoin’s price is also prone to massive swings of several hundred dollars within a day. With bitcoin futures in the works, investors will be able to protect themselves from potential sharp drops in prices through hedging.

The ability to hedge bitcoin investments paves the way for other products, such as bonds.

Fisco’s three-year bitcoin bond was issued by its digital currency exchange unit for an internal trial on Aug. 10, according to a Google translate of the press release.

The bond has a three percent annual interest rate and returns bitcoins when it matures, the release said. The total worth of the bond was 200 bitcoin, or $900,000 at Thursday’s prices.

The bitcoin bond “brings digital currencies into the world of high finance,” said Dan Doney, chief executive officer of Securrency, which plans to launch a platform at the end of the year to allow investors to buy stocks using bitcoin. Doney was chief innovation officer at the U.S. Defense Intelligence Agency before co-founding Securrency in 2015.

The biggest challenge is “it is very difficult to predict the price of bitcoin tomorrow, let alone a year from now,” Doney said.

A bitcoin-backed bond would allow large institutions to store value using the digital currency and potentially be more open to accepting bitcoin as payment, analysts said.

“It is interesting financial firms are trying to get their arms around the currency and what it can be,” said Brian Patrick Eha, author of “How Money got Free: Bitcoin and the Fight for the Future of Finance.”

In early August, the Chicago Board Options Exchange said it planned to launch bitcoin futures as soon as the fourth quarter of this year. That paved the way for VanEck, which sells gold ETFs and other investment products, to file last Friday with the U.S. Securities and Exchange Commission for a “VanEck Vectors Bitcoin Strategy ETF” that proposes to initially invest in bitcoin futures.

The U.S. Commodity and Futures Commission in late July also approved a digital currency trading platform called LedgerX to clear derivatives.

Historically cryptocurrencies “were very much a domain for crypto anarchists and tech-savvy people, and that has changed in the last couple years,” said Niklas Nikolajsen, CEO of Swiss-based digital currency broker Bitcoin Suisse. “This means a whole new ballgame of people are going to get access to the market.”



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Bitcoin bond launch brings digital currency step closer to ‘world of high finance’

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Bitcoin's market value tops that of Netflix


Bitcoin is getting closer to looking like a traditional financial product.

Japanese financial information firm Fisco announced Monday it is experimenting with the country’s first bitcoin-backed bond. The news follows other announcements in the last several weeks for bitcoin options, futures and an exchange-traded fund tracking bitcoin derivatives in the U.S.

“I think it’s a very healthy and natural progression of the space,” said Adam White, Coinbase vice president and general manager of its GDAX exchange, told CNBC in a phone interview.

Derivatives products will allow for greater liquidity, better price discovery and lower volatility, White said. “I think products like derivatives or an ETF effectively allow traders to do two things: speculate and hedge risk on the price speculation.”

Bitcoin price 12-month performance

Source: CoinDesk

Bitcoin has more than quadrupled in price this year, hitting a record above $4,500 Thursday and notching a market value of $74 billion amid growing institutional investor interest in the digital currency. Many governments and financial institutions see enormous potential for improving transaction security and efficiency using the blockchain technology that supports bitcoin.

But the surge in investor demand has also revealed access issues with third-party storage systems and trading platforms that fall short of the more established Wall Street markets.

Bitcoin’s price is also prone to massive swings of several hundred dollars within a day. With bitcoin futures in the works, investors will be able to protect themselves from potential sharp drops in prices through hedging.

The ability to hedge bitcoin investments paves the way for other products, such as bonds.

Fisco’s three-year bitcoin bond was issued by its digital currency exchange unit for an internal trial on Aug. 10, according to a Google translate of the press release.

The bond has a three percent annual interest rate and returns bitcoins when it matures, the release said. The total worth of the bond was 200 bitcoin, or $900,000 at Thursday’s prices.

The bitcoin bond “brings digital currencies into the world of high finance,” said Dan Doney, chief executive officer of Securrency, which plans to launch a platform at the end of the year to allow investors to buy stocks using bitcoin. Doney was chief innovation officer at the U.S. Defense Intelligence Agency before co-founding Securrency in 2015.

The biggest challenge is “it is very difficult to predict the price of bitcoin tomorrow, let alone a year from now,” Doney said.

A bitcoin-backed bond would allow large institutions to store value using the digital currency and potentially be more open to accepting bitcoin as payment, analysts said.

“It is interesting financial firms are trying to get their arms around the currency and what it can be,” said Brian Patrick Eha, author of “How Money got Free: Bitcoin and the Fight for the Future of Finance.”

In early August, the Chicago Board Options Exchange said it planned to launch bitcoin futures as soon as the fourth quarter of this year. That paved the way for VanEck, which sells gold ETFs and other investment products, to file last Friday with the U.S. Securities and Exchange Commission for a “VanEck Vectors Bitcoin Strategy ETF” that proposes to initially invest in bitcoin futures.

The U.S. Commodity and Futures Commission in late July also approved a digital currency trading platform called LedgerX to clear derivatives.

Historically cryptocurrencies “were very much a domain for crypto anarchists and tech-savvy people, and that has changed in the last couple years,” said Niklas Nikolajsen, CEO of Swiss-based digital currency broker Bitcoin Suisse. “This means a whole new ballgame of people are going to get access to the market.”



Here's when you should buy Bitcoin, according to one trader


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Bitcoin hits record and its market value now tops big tech companies like Netflix, Paypal

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Bitcoin's market value tops that of Netflix


That said, bitcoin is not a stock and comparisons to other stocks’ market value, especially major U.S. market gainers like Netflix, are more to illustrate the significant size of interest in the digital currency.

In addition, bitcoin’s market value theoretically reflects interest in the potential for bitcoin to become a global means of payment.

At the very least, many digital currency enthusiasts expect bitcoin to become “digital gold.” But gold’s market value of about $7.5 trillion dwarfs that of bitcoin by 100 times.

At Thursday’s record highs, bitcoin would rank 72nd by market value in the SP 500 and 28th in the Dow Jones industrial average, just behind American Express’ $78 billion market capitalization.

Bitcoin’s market value also tops those of leaders in a variety of major industries, including software company Adobe, financial technology firm PayPal, investment giant BlackRock, industrial company Caterpillar and package shipping company FedEx.

To Ari Paul, chief investment officer of cryptocurrency investment firm BlockTower Capital, a better analogy is comparing bitcoin with PayPal’s market capitalization.

“PayPal was initially created with a similar vision to bitcoin — as permissionless money,” Paul said. “PayPal wasn’t able to fulfill that vision, but bitcoin is well on the way. Bitcoin can be used to transfer $100 million anywhere in the world in 10 minutes and for less than $2. Bitcoin rising in value above PayPal reflects its growing role as the best way to move money globally.”



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A girl poses for a photograph on a stone sphere monument that unidentified persons have painted with the white Bitcoin cryptocurrency symbol in Oktyabrskaya Square, Yekaterinburg, Russia.

Bitcoin climbed above $4,500 to a record high Thursday, giving it a market valuation larger than that of Netflix.

The digital currency has a market value of about $74 billion, up $30 billion in August and topping Netflix’s $72.7 billion market capitalization.

Bitcoin climbed about 2 percent to a record high of $4,522.13 Thursday, according to CoinDesk.

Netflix shares traded more than 1 percent lower amid a broader stock market decline.

Analysts said bitcoin’s latest climb is a relief rally following the uneventful split of bitcoin into bitcoin and bitcoin cash earlier this month. Increased interest in bitcoin, especially from institutional investors, has helped the digital currency more than quadruple in price this year, analysts said.

Netflix shares hold gains of about 35 percent this year but have fallen about 8 percent in August after Disney announced last week it will pull its movies fromthe service and start its own streaming platforms.

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Bitcoin ticks higher following pullback from record

The price of bitcoin rose Wednesday, following a brief dip below the $4,000 mark, in an apparent run at another record high.

Bitcoin

BTCUSD, -1.69%

 touched an all-time high of $4,483.55 on Tuesday, following a record close at $4,382.74 on Monday, according to Coindesk. Following a slight pullback, the price of bitcoin was last up 2.6% at $4,315.41, after touching an intraday high of $4,410.98. For its part, the greenback, as gauged by the U.S. dollar index

DXY, -0.08%

 , declined 0.3% to 93.57.

The cryptocurrency has been on a streak of setting records lately. Having first broken the $1,000 barrier in November 2013, bitcoin took until May of this year to break the $2,000 barrier, with $3,000 surpassed in June and then $4,000 this past Sunday.

On Tuesday, blockchain technology company Blockstream said it is using leased satellites to transmit access to the blockchain, which accounts for all transactions and maintains cryptocurrency integrity, to two-thirds of the world’s landmass and expects global coverage by the end of the year.


At a $71.06 billion market cap, bitcoin is in the same neighborhood as such SP 500 index

SPX, +0.14%

 companies such as Costco Wholesale Corp.

COST, +2.16%

, DuPont

DD, +0.53%

, and Netflix Inc.

NFLX, +0.88%

.

Ether, the cryptocurrency running on the Etherium network, was up 3.9% at $301.20 , off its high of $388.49 set on June 15.

Read: Opinion: How you can make easy money from the bitcoin bubble

The total market capitalization for all cryptocurrencies currently stands at $140.48 billion, according to Coinmarketcap.com, just under the market cap of Boeing Co.

BA, -0.66%

, and slightly more valuable than International Business Machines Corp.

IBM, +0.30%

Article source: http://www.marketwatch.com/story/bitcoin-ticks-higher-following-pullback-from-record-2017-08-16

Bitcoin’s Next Battle May Already Be Looming

Visa, which would let them earn more transaction fees. Their opponents, developers who upkeep bitcoin’s software, want it to act more as a robust platform that allows them to build new functions on top. Reconciling these two needs is at the core of the ongoing internecine battle, making it even more important for stakeholders to keep an eye on developments through November.

The Uber investor and boardroom drama continues unabated. The ride-hailing company is in exclusive talks to line up funding from four investors, but a deal, which could reach as much as $12 billion, hangs on the outcome of a courtroom brawl between Travis Kalanick and Benchmark.

A billionaire comes out of hiding. Chen Tianqiao, who built game developer Shanda Interactive Entertainment into what was once China’s biggest internet company (big enough to rival Alibaba and Tencent), disappeared after leaving China and taking his company private in 2012. Now, he’s ready to talk again, donating money for research into the human brain.

Staring at the sun isn’t really a good idea. So Amazon is cracking down on sellers of fake eye protection for viewing this month’s total solar eclipse in North America. The web retailer’s efforts to police faulty or counterfeit eclipse-viewing glasses has caught up one small merchant in Utah.

It’s Netflix, but at movie theaters. Mitch Lowe, a Netflix co-founder, has an extreme proposal for how to get more people into seats: Let them come to all the showings they want for about $9.95 per month. His startup, MoviePass, plans to drop the price of the company’s movie ticket subscriptions, with the goal of amassing a large base of customers and collect data on viewing behaviors.

Article source: http://fortune.com/2017/08/16/bitcoin-battle-segwit-software/