Category Archives: Bitcoin
Embracing Bitcoin – Seeking Alpha
I continually get news feeds streaming across my computer telling me how other countries are jumping on board with Bitcoin. But, I read in American financial sites that say to stay away from Bitcoin. The fact is, as a medium of exchange, Bitcoin has tremendous value and ability. As an investment class, Bitcoin continues to move higher, latest pauses on the road to $3k. Bitcoin, as an asset class is heading much higher based upon supply and demand. Articles are being printed showing that Bitcoin could eventually print $1 million dollars. While I can see Bitcoin $1 million dollars, I am going to focus on the crypto-currency's move into from four to five digits for now; that is far more easily accessible.
It is very easy for Americans to dismiss Bitcoin. By, and large, Americans think in only one type of currency; The U.S. Dollar. So, when I read articles on major financial website trashing Bitcoin, I have no problem trashing the articles; the disconnect with Bitcoin is more because of a lack of understanding. A perfect example of a country that is not only embracing Bitcoin is Japan. Japanese are embracing Bitcoin at a very rapid pace. Because of this, demand is pushing higher and higher, and so is price. I see this as being continuous. I see Bitcoin pushing past $3k and, in fact, eventually hitting $10,000.00 per coin with an eventual price target of $1 million for Bitcoin. This is the framework of why that is going to happen.
Whenever I sit down with anyone who asks me about Bitcoin, I always show anyone the daily chart from just the past year alone - below. I then tell them they should consider Bitcoin as an alternative and explain the reasons why. I go into the details about limited supply and no central bank as well as what is happening in the economies around the world. Again, Americans have a tough time with this simply because they cannot think outside of the U.S. Dollar box. Most Americans have never even traveled outside of the country; only 8% of Americans traveled outside of the United States in 2016.
Bitcoin is being embraced in Japan at an incredible pace. I have read several articles over the past two weeks alone where Japanese hotels, cash systems and other purveyors are adding Bitcoin into their economy. And, yet, in America, financial websites are warning to stay away from Bitcoin. I took this as a lack of education, if anything.
In Japan, the government has legalized Bitcoin - along with other countries. At the same time, the Bank of Japan is in the process of desperately trying to dilute their currency to create any kind of inflation possible. It is largely not working.
Here is a look at the central bank's "printing press" in action: As stated, their goal is to stimulate the Japanese economy and keep inflation at target, normal levels. They are not succeeding so far. Inflation at 0.4% on a year-over-year basis is not even worth bringing up; It is negligible. My bigger fear is that mountain of printing that the Bank has done.
In the meantime, savvy Japanese investors are scooping up Bitcoin at a rapid pace. Whereas Japanese Bitcoin exchanges were not even really a factor, since the first week of April when the government legalized Bitcoin, the Japanese exchanges are now neck-and-neck with America exchanges. This is just one of many countries where Bitcoin is not just a curiosity but is becoming a way of life and is being integrated into the economy at a rapid pace with 100s of thousands of pay stations and ATMs appearing.
Americans simply do not get Bitcoin and they may very well regret that later. There is a great deal of potential with Bitcoin as an alternative to banking; some 56 million Americans do not even have a bank account. Bitcoin, just like cash, does not have the extensive paperwork criteria like a bank account has. With some 56 million Americans not even having a bank account this is a significant opportunity.
Unlike the charts above showing the Japanese central bank attempting to dilute its currency, Bitcoin has not central bank. Instead, Bitcoin will only ever have 21,000,000 million coins. Because of that, the price of Bitcoin is going to continue to be pushed higher. In fact, unlike fiat currency, Bitcoin appreciates in value. The purchasing power of any fiat currency is always being eroded by a central bank, whereas Bitcoin's potential to continue to move higher. And, although this cartoon is a bit tongue-in-cheek, it is also very accurate: Compared to today, if you had invested $100 in Bitcoin in 2009, you would be worth about $75 million today. And, yet, there are people who trash the idea of Bitcoin simply because they do not understand the currency and what it does.
At the beginning of April, Bitcoin was trading at $900.00. It is now just above $2,650.00 and looks set to test the $3,000.00 level for the third time. That is a simple multiple of 3.5x in two months. If that happens again, even if it takes another 6 months to happen, or even 6 years, Bitcoin will rise to nearly $10,000. That is an impressive gain unmatched by other "stores of value" or asset classes. Whether the currency crosses the $3k level this time, I am not certain. But, I am certain it will push past eventually. It is a matter of when, and not if, given the limited supply and the potential widespread demand.
Bitcoin's limited quantity of coins is set. But, there are 7 billion potential users of the currency. The fundamentals continue to support Bitcoin moving higher and higher as more and more access is available. And, since this currency's track record is that it moves higher and higher, its appeal over fiat currency is gar greater.
I can very easily see a day when Bitcoin pushes past $10,000.00 per coin. And, I can see a day when there is another order of magnitude to the coin's value. Some savvy investors even see $500,000.00 per coin.
Bitcoin works because of the agreement that there is a price for it and its exchangeability for goods and services, or conversion into fiat currency. And, as more and more countries ensure Bitcoin is able to work unhinged, the demands for the currency will continue to move higher. That will push up price. It is an added value to the coin's appeal.
Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in COIN over the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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Embracing Bitcoin - Seeking Alpha
Where to look for the next bitcoin-like rally if the sun shines right – MarketWatch
The battering the markets have taken from oil isnt doing much for its popularity or that of any commodity. But theres an out-of-this world reason why its worth taking another look.
Crude is down 4.5% for the week, failing miserably to climb out of a bear market. Its brought down stocks, too, as supply panic (again) gripped investors.
Never fear the oil doom and gloom will all be over soon, says veteran macro-economic analyst Yves Lamoureux. He argues the news flow is now so utterly bearish on oil, that its time for a complete reversal.
And thats not all. The entire commodity sector is heading into a five-to-seven year bull market, with agricultural produce in particular ready to make a sharp move higher, the market observer says for our call of the day.
We believe that we have arrived at the turning point again, where commodities will outshine an investment in stocks. The next bitcoin might as well be cocoa, oil or coffee, says Lamoureux, who way back in February predicted the bitcoin rally.
His call on soft raw materials comes even after cocoa CCU7, +1.81% slumped close to a 10-year low this week, and coffee KCU7, +4.46% fell to levels not seen in more than a year.
So why the optimism? It comes down to something as unexpected as sunspots dark spots on the surface of the sun that reappear on an 11-year cycle.
The level is going down, and it creates less illumination, resulting in poor harvests, Lamoureux explains in an email to MarketWatch. That means demand for agricultural produce is likely to outstrip supply, which usually pushes up prices.
Investing on the basis of sunspots might seem crazy, and the correlation has been questioned regularly (see here for an explainer). But Lamoureux is happy to cite British astronomer Wilhelm Herschel the discoverer of Uranus who observed back in 1801 hat when there were fewer sunspots, the price of wheat soared.
Dow ESU7, +0.15% and Nasdaq ESU7, +0.15% futures YMU7, +0.05% are falling, but S&P futures ESU7, +0.15% are perking up a bit. Thats as crude CLU7, +0.72% is still struggling to push back above $43 a barrel, swinging between gains and losses.
Europe SXXP, -0.35% , however, is looking more downbeat this morning, following a mixed session in Asia ADOW, +0.23%
Metals GCU7, +0.00% are on the rise, but the dollar DXY, -0.29% is pulling back against all other major currencies.
Read the latest in Market Snapshot
Airlines anyone? A few months ago when the United scandal raged on social media, investors duly shied away from shares in the industry. But its time to dive back into the sector, says J.C. Parets of the All Star Charts blog, who says the industry will take off as part of an inevitable rally in industrials.
If you want to look inside of industrials to see what could possibly take the broader sector higher, look no further than airlines and railroads, he said in a blog post.
To me, this looks like an upside resolution in the AMEX Airline Index $XAL that is about to make a run towards those former all-time highs in the 1990s, he added, pointing to this chart of the NYSE Arca Airline Index XAL, +0.06% .
Well get a snapshot of how well (or poor) the economy has done in June at 9:45 a.m. Eastern Time, when the flash manufacturing and services PMIs come out. Home sales for May at 10 a.m. will be closely watched, too.
A trio of Fed speakers are also likely to keep investors on their toes, with St. Louis Fed President James Bullard, Cleveland Fed President Loretta Mester and Fed governor Jerome Powell all speaking after the market opens.
See: MarketWatchs economic calendar
Nobody is perfect, but I fundamentally believe he can evolve into the leader Uber needs today and that hes critical to its success Michael York, a product manager at ride-sharing service Uber, who started an employee petition to get Travis Kalanick back as chief executive.
Kalanick resigned earlier this week after a shareholder revolt.
15% Thats how much the pound GBPUSD, +0.3706% has lost in the year since the shock Brexit vote, getting no break as the uncertainty dragged on.
Read: Brexits impact on markets and the U.K., one year after the vote in charts
Bed Bath & Beyond BBBY, -12.05% is getting crushed after a disappointing earnings report.
Whirlpool Corp. WHR, -2.14% is also getting a little squeezed. London police said it was a fridge of Whirlpools Hotpoint brand that started the deadly fire in Grenfell Tower last week. The police are also considering manslaughter charges following the blaze.
Tesla TSLA, +0.45% is considering building a car factory in China to build electric vehicles for that market.
U.S. banks are strong and would be able to survive a severe recession, according to the Feds stress test of 34 of the nations biggest banks.
Biotech IBB, -0.28% and health care shares XLV, -0.17% are on track for their strongest weekly gain since November last year, after Republicans released a draft of their health-care overhaul bill.
It doesnt pay to be president. Donald Trumps net worth has dropped below the $3 billion mark, according to the most recent Bloomberg Billionaires Index.
And then theres good news for EU citizens living in the U.K. British Prime Minister Theresa May has offered permanent residency for the blocs citizens, post-Brexit.
Tonight Danes burn witches on bonfires to mark midsummer
Israeli airline El Al can no longer ask female passengers to change seats
Sand its actually rarer than you think
Qatar must meet 13 demands if it wants four other Arab states to lift sanctions
How to avoid sexual assault taught by Bill Cosby
The U.S. has banned imports of Brazilian beef
You can take your dog to work every day at these pet friendly companies
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Where to look for the next bitcoin-like rally if the sun shines right - MarketWatch
When the Bitcoin Bubble Bursts – Bloomberg
Financial markets are frothier than a millennial's 3-D latte. Investors are scrambling to throw money at Argentina, Vice Media and George Clooney's tequila. Only the crypto-currency craze seems to give us comfort there are worse bubbles out there.
One bitcoin is now worth
$2,677
The latest warning against digital currencies comes from Aberdeen Asset Management's top venture capitalist, Peter Denious. He blames a feeding frenzy of speculation for the explosion in prices and new coins.
"A lot of lessons will be learned and a lot of money will be lost, before a lot of money can be made," he told Bloomberg News. "It's a gold-rush mentality."
Bitcoin Boom
Crypto-currency craze is unsettling people but shows little sign of going into reverse
Source: Bloomberg data for Bitcoin Tracker, an open-end Exchange Traded Note incorporated in Sweden.
Denious is right to say that the market is speculative and unsustainable. Despite recent price wobbles, Bitcoin has almost tripled year-to-date, to $2,677. Its closest rival, Ether, is now worth more than 40 times its end-2016 level of $8.
This isn't because people are using crypto-currencies to buy homes or cars, or because regulators suddenly like them. It's seen as a way to make money.
Another Bubble?
BofA sees S&P 500's market cap relative to nominal GDP hitting all-time highs
Source: Bloomberg
It's hard, though, to separate the crypto craze from worries about regulated public markets and the real economy after a decade of ultra-cheap central-bank cash.
Everything's Fine
Volatility keeps getting crushed
Source: Bloomberg
Talk of a bubble permeates every aspect of today's financial markets. Bank of America research offered up several signs of "Wall Street excess" on Friday:
Bitcoin wasn't mentioned once. That makes it harder for the mud thrown at crypto-currencies to stick. Even Fidelity's CEO and John McAfee are mining bitcoins in this market.
The mind-boggling returns of crypto-currencies also reflect a desire to escape public market bubbles rather than just emulate them.
If bonds are the old world's safe haven, Bitcoin is the millennial generation's apocalypse insurance. Crypto-currencies are marketed as a direct expression of opposition to central-bank and government policy, far more so than gold.
Just as low yields push wealthy investors to take bigger risks -- like buying Argentinian debt -- some people see Bitcoin as an escape from financial repression and instability.
That's why Venezuela, where demand for digital coins is soaring amid triple-digit inflation, currency devaluation and political crisis, has one of the highest potentials for bitcoin adoption in the world, according to the London School of Economics. The other top country is -- you guessed it -- Argentina. Monetary experiments beget technological ones.
This doesn't mean that there are purely rational explanations for the actual price of crypto-currencies today, tomorrow or yesterday. If the bubble bursts, investors will have to lower their expectations as to what Bitcoin and its ilk can actually achieve without rampant speculation and illicit activity.
But the more worrying scenario is that political unease about central bankers and wealth inequality will help to funnel more money into crypto-currencies.
Societe Generale's Albert Edwards reckons citizens are close to turning on "unelected and virtually unaccountable central bankers" after years of economic crisis and stagnation.
Bitcoin's computer scientists don't deserve to be seen as a better alternative. But if the path out of the financial crisis takes a sudden turn for the worse, it may well be too late.
Both bubbles seem too closely connected for comfort.
This column does not necessarily reflect the opinion of Bloomberg LP and its owners.
To contact the author of this story: Lionel Laurent in London at llaurent2@bloomberg.net
To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net
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When the Bitcoin Bubble Bursts - Bloomberg
How to bet on bitcoin, without the crazy volatility? Here’s one idea – MarketWatch
Amid what appears to be widespread fatigue among traditional investors, excitement is booming in the wild, wild west of cybercurrencies right now.
Over on Reddit, one forum dweller said they were ready to drop $20,000 into bitcoin BTCUSD, +0.52% after doing some research and concluding the only way was up for the crypto cash. It beats $20k sitting in a safe-deposit box, the poster said.
Only invest what you are willing to lose, was one response.
For those who are willing, Rupert Hargreaves, blogging for ValueWalk, offers up a less volatile way to bet on cryptocurrencies over just buying bitcoin or ethereum -- though theres still plenty of risk involved. He says theres big money being made on cybercurrencies... and where theres an opportunity, there are hedge funds.
Hargreaves took a deep dive into the Crypto-Currency Fund Index from Eurekahedge. The data firm uses the index to track the performance of five actively managed hedge funds with holdings in bitcoin, ethereum and other digital cash.
His findings? The Eurekahedge index not only beat traditional hedge funds, it even blew bitcoin itself out of the water.
Between June 2013 and April this year, the index shows eye-popping cumulative returns of 2,152.32%, versus 1,408.11% for the Bitcoin Price Index. Looked at annually, thats a return of 125.35%, compared with 102.96%.
It should be noted that while less volatile than a straight play on bitcoin or another cryptocurrency, the level of volatility for the index itself is off the chart, Hargreaves notes in his blog post.
In its report on performance, Eurekahedge said that over a period of 14 months between December 2013 and January 2015, the Eurekahedge Crypto-Currency Fund Index lost almost 73% of its value from its 2013 high. In contrast, the Bitcoin Price Index lost almost 81% of its value, according to Hargreaves.
Whether were on the edge of a South Sea Bubble or greatness for the cybercurrency faithful, bitcoin and its pals have been bringing the drama.
Popular rival ethereum suffered a flash crash Wednesday, plunging from more than $317 to briefly trade as low as 10 cents in a flash cash on the GDAX exchange before rebounding. In a post, GDAX Vice President Adam White said a multimillion-dollar market sell order was placed on GDAXs ETH-USD [ethereum-U.S. dollar] order book, which resulted in orders being filled from $317.81 to $224.48for a slippage of 29.4%. That, in turn, began a cascade of around 800 stop-loss orders and margin-funding liquidations, which sent the price temporarily as low as a dime, he explained.
Just a day in the life of a brave new world.
Check out: How big is bitcoin, really? This chart puts it all in perspective
Original post:
How to bet on bitcoin, without the crazy volatility? Here's one idea - MarketWatch
Meet Vitalik Buterin, the 23-year-old founder of bitcoin rival ethereum – CNBC
Here's a little history on the founder: Buterin was born in Moscow, according to a feature by Wired's Backchannel last year. At 6 years old, he moved with his family to Canada. He was considered a math genius from an early age and was placed in a gifted program in the third grade, the publication reports.
Buterin reportedly first grew interested in bitcoin when his father introduced him to the concept, and he soon became an expert in the emerging field. In 2011, he launched the cryptocurrency's eponymous magazine.
In May 2013, the 19-year-old programmer traveled to California to a cryptocurrency conference led by the Winklevoss twins. According to Backchannel:
Veterans of the dotcom era drew comparisons between cryptocurrencies and the dawn of the Internet. Booths showed off new hardware wallets, merchant payment platforms, and Bitcoin ATMs. And Buterin witnessed it all as a representative of Bitcoin Magazine. The San Jose event was Buterin's first glimpse at the living, breathing community cropping up around the cryptocurrency economy.
"That moment really crystallized it for me," he tells the publication about the experience. "It really convinced me that, 'Hey, this thing's real and it's worth taking a risk and jumping into.' So I did."
Buterin dropped out of the University of Waterloo and spent the rest of the year traveling around the world visiting with individuals working on bitcoin, according to Backchannel.
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Meet Vitalik Buterin, the 23-year-old founder of bitcoin rival ethereum - CNBC
Bitcoin Looks a Lot Like an Early Amazon – Investopedia
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Bitcoin Looks a Lot Like an Early Amazon - Investopedia
How big is bitcoin, really? This chart puts it all in perspective … – MarketWatch
Not all money is created equal.
Bitcoin burst into our financial consciousness like a fiery comet, setting the internet ablaze with visions of upending the existing global money system. Yet, by its nature as a cybercurrency, whose legitimacy only exists in the ether, its credibility leaves much room for debate.
HowMuch.net on Wednesday put things into perspective and demonstrated that for all the buzz and excitement bitcoin has generated, it still has a long way to go to be even remotely relevant.
The current value of all the bitcoin in the world is worth about $41 billion, according to the cost-estimating website.
That is undoubtedly more money than most Americans will ever see in their lifetime. But when it comes to bragging rights, bitcoin really is the poor relation.
Also see: Teenage bitcoin millionaire can see the cryptocurrencys value shooting as high as $1 million
As the HowMuch chart shows, the fattest bubble is for all the money in the world including bank deposits which comes out to $83.6 trillion.
See larger chart
The second biggest is for all the stocks trading across the globe, totaling $66.8 trillion, and more than double all the physical money in the world.
A run towards or away from stocks would thoroughly deregulate the global economy, and nothing more dramatic than a minus sign in front of that amount would lead to the collapse of global civilization, said Raul Amoros at HowMuch.net.
For all its glitter, the total value of gold is a distant fourth, at only about $8.2 trillion, while U.S. dollars in circulation add up to $1.5 trillion.
The next bubble is for Apple Inc. AAPL, +0.59% valued at about $730 billion, followed by Amazon.com Inc. AMZN, +0.97% at $402 billion.
Meanwhile, the value of all the cryptocurrencies in existence, such as Litecoin and Monero, checks in at $100 billion, slightly ahead of Bill Gates MSFT, +0.51% who claims a net worth of $86 billion as the richest man in the world.
Larry Page, co-founder of tech giant Google GOOGL, +0.99% and the 12th-richest on Forbes billionaires list, alone is worth all the bitcoin floating around in cyberspace, with a net worth of $41 billion.
Money is about trust. Hence, the U.S. dollar DXY, -0.05% as the monetary representation of the biggest economy in the world is also the reserve currency of choice for many foreign governments.
As of yet, bitcoin does not enjoy that level of respect given its wild swings recently. Nonetheless, the rise of cryptocurrencies in of itself suggests that people may be slowly losing faith in money and other traditional measures of wealth, according to Amoros.
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How big is bitcoin, really? This chart puts it all in perspective ... - MarketWatch
Bitcoin millionaire Erik Finman says going to college isn’t worth it – CNBC
Finman began investing in bitcoin in May 2011 at the age of 12, thanks to a $1,000 gift from his grandmother and a tip from his brother Scott.
Though he's close with his family which he calls the "Elon Musk version of the Kardashians" growing up in "small town" Idaho outside of Coeur d'Alene wasn't easy. Finman was especially frustrated with his high school teachers, and begged his parents to let him drop out at 15.
"(High school) was pretty low quality," he said. "I had these teachers that were all kind of negative. One teacher told me to drop out and work at McDonald's because that was all I would amount to for the rest of my life. I guess I did the dropout part."
Surprisingly, his parents who met pursuing their Ph.D.s at Stanford agreed. Finman sold his first bitcoin investments at the end of 2013, when they were valued at $1,200 a piece.
With the $100,000 Finman launched an online education company called Botangle in early 2014 that would allow frustrated students like him to find teachers over video chat. He also used the funds to move to Silicon Valley, did some fun things like meet Reddit co-founder Alexis Ohanian and traveled.
"I really liked Colombia," he said. "It was fun, but a little sketchy. Some interesting stuff happened. I was held up at gunpoint there, which is pretty scary, but I have this emergency button I programmed in Android that puts you on speaker but turns off audio automatically and dials [a local emergency number]."
"Maybe I'll turn that into an app," he added. "It's handy."
It was hard getting people to take a 15-year-old tech entrepreneur seriously, Finman admitted. He recalled being called in to interview with a "really, really high-up" unnamed Uber executive, who instead of listening to his Botangle pitch discouraged him and told him he would never win the bet with his parents.
Eventually he found a buyer for Botangle's technology in January 2015. The investor offered either $100,000 or 300 bitcoin, which had dropped in value at that time to a little more than $200 a coin. He took the lower cash value bitcoin deal because he believed it was "the next big thing."
"My parents asked 'Why don't you take the more cash?"' Finman explained. "But I thought of it more of an investment."
Since then, Finman has been managing his family and his own bitcoin investments. He's also kept busy on other projects, including working with NASA to launch a rocket through the ELaNa project. One thing he won't do is go back to school.
"I never got my GED, and I don't see the value in it," Finman said. "The purpose of that would be to get another education level and get a job. I had to learn through running a business. Instead of writing essays for English class, I had to write emails to important people."
Although the rest of his family has degrees his brother Scott went to Johns Hopkins at 16 and now has an enterprise software company, while his other brother Ross went to Carnegie Melon at 16 for robotics and is now pursuing his Ph.D. at MIT he's happy learning about the real world from experience.
"The way the education system is structured now, I wouldn't recommend it," Finman said. "It doesn't work for anyone. I would recommend the internet, which is all free. You can learn a million times more off YouTube and Wikipedia."
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Bitcoin millionaire Erik Finman says going to college isn't worth it - CNBC
Bitcoin And Ethereum Crash: For A Few Minutes – Seeking Alpha
Source
Many investors are wondering why Bitcoin (Pending:COIN) and Ethereum are down after such a string of good news. Bitcoin's scaling issues look like they will be resolved amicably through Segwit2x, and this was expected to be a significant boost to the entire cryptocurrency space.
However, things did not go as expected. While Bitcoin's consensus-driven rally did materialize - taking the asset to almost $2800 - Bitcoin's rise came with a brief decoupling with Ethereum. The two assets are normally hugely correlated. But at around 4:30-6:20 pm EST on the 20th of June, they briefly moved in opposite directions.
Ethereum, along with Bitcoin, then proceeded into a sharp downward correction. The Ethereum market, in particular, seems to have fallen victim to a flash crash that took it almost to the single digits before shooting back to around $330. This article will analyze what occurred on the 21st to figure out how this development affects the long-term investment thesis for both digital assets.
The Problem
Ethereum's problems started with the Status ICO. I briefly mentioned how this event was a fundamentally bullish catalyst for Ethereum. This expectation was predicated on the fact that investors are required to buy Ethereum to invest in status - thus driving up demand for Ethereum.
As expected, the Status ICO was hugely popular. In fact, it was so popular that it seems to have congested the system leading to extremely long transaction wait times and exposing what many believe are potential scaling issues in the Ethereum network.
The problems with the Status ICO seem to have started a chain reaction of negative market sentiment that affected the entire "cryptoverse," including Bitcoin. High transaction volume for the Status ICO as well as what looks like panic selling briefly crashed the popular Coinbase exchange.
To make matters worse, there was a "flash crash" - the price of Ethereum briefly dipped to unimaginable lows, liquidating margin positions and filling buy orders for as low as $13 according to anecdotal reports.
Source
No one is sure what caused this flash crash - but it appears to be limited to the Coinbase/GDAX exchanges and there has been little impact on trading in other regions - especially Asia where the prices for both Bitcoin and Ethereum continue to trade for a significant premium over the west.
The most interesting thing about this event is that many investors are claiming that "unrealistically low" buy orders - for prices often around 90% less than the real price - were filled during this event. Needless to say, many people made a lot of money.
Looking to the future
The Civic ICO is currently underway, and investors who are interested in participating will need to do so through Ethereum, thus providing further support for prices going forward.
On top of this, as the dust from the Status ICO settles, transaction volume should calm down on the exchanges and bolster the usability of the network. The flash crash was an anomaly and should not be seen as an indictment against Ethereum. Instead, investors should avoid unstable exchanges and strongly avoid trading digital assets on margin until the online infrastructure is more sophisticated.
I expect the Asian market to boost Ethereum prices over the next twelve hours because this region is probably not as affected by the events on U.S exchanges.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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Bitcoin And Ethereum Crash: For A Few Minutes - Seeking Alpha
The first investor in Snapchat explains why the bitcoin rally is just getting started – CNBC
Uncertainty about governments could make cryptocurrency like bitcoin an even more in-demand commodity, said Lightspeed Venture Partners partner Jeremy Liew.
"Bitcoin and the other digital currencies, they all really see a lot of benefit in times of political and economic instability," Liew said to CNBC. "Fundamentally when a citizen doesn't have faith in their currency of their country, then they are looking for alternatives, and a digital alternative like bitcoin becomes much more compelling in those circumstances."
Lightspeed co-led the first venture round in Blockchain, a bitcoin wallet, in October 2014. Liew also led the first venture investment in Snap, whose IPO in March turned a $485,000 investment into a stake worth more than $1 billion.
Liew said in parts of the Middle East, Africa, South America and Eastern Europe, concerns over the government being overthrown or persistent long-term currency inflation have been driving bitcoin's increasing valuation. A bitcoin is valued at a little over $2,800 as of Tuesday afternoon, according to Coindesk.
While there are other cryptocurrencies like ethereum, Liew points out it's currently valued at just a fraction of bitcoin's market cap.
"If you're going to be an investor in anything, you want to be where the most trading volume is happening, and right now that's happening in bitcoin," he said.
Continued here:
The first investor in Snapchat explains why the bitcoin rally is just getting started - CNBC