ECB Considers “Legal Restraints” Against Bitcoin Says Council Member
The ECB has said a lot of things about bitcoin over the past few years, and this week the Austrian economist and ECB council member Ewald Nowotny gave his opinions. Nowotny says the bank is currently looking into regulating decentralized currencies but did not detail what kind of mandates the institution would enforce. The European official believes bitcoin is too volatile and lacks in regulatory supervision.
“Bitcoin is not a currency, it is highly speculative and volatile, it is not subject to any supervision either, and the stock market movements of the recent period make it clear,” explains Nowotny speaking with the Austrian weekly trend report.
It’s not the first time Nowotny has scrutinized bitcoin as the ECB council member has been very outspoken against the digital asset. “Bitcoin does not own the main feature that makes a currency good, namely – stability,” explains Nowotny this past July. “The cryptocurrency is subject to speculations,” he adds. However, at the time Nowotny explains that even though the bank wouldn’t ban bitcoin; retail investors should be “aware of the risks.”
Full story at http://bit.ly/2wCX5lS
Source: Bitcoin News
Bitcoin Gives Window into Rampant Money Laundering
Money laundering has always been a problem even before the time of Bitcoin, however, BlackRock’s CEO, Larry Fink has taken an interesting assessment of what Bitcoin can do.
The investment management corporation head thinks there is merit in Bitcoin, however he sees its rapid rise as an indicator that may help to identify the extent of money laundering happening across the globe.
Bitcoin, while not to be blamed, has become a tool of money laundering, and that for Fink is indicative as to how much money laundering is going on globally.
The rapid ascent of cryptocurrencies “identifies how much money laundering there is being done in the world,” Fink said.
Full story at http://bit.ly/2gke9Hn
Source: CoinTelegraph
What You Should Know about Cryptocurrency before Making an Investment
If you want to learn more about this subject, you should already be used with the subject of cryptocurrency. If not, there are some basic notions you will want to know about. It is paramount to know what the money functions are and why it is required to know some things about them, about how the system works and how it can help your life become easier. Managing your own economy should be one of your goals in life. Even though it might sound a little bit utopian, thinking in perspective about the future won’t harm you in any way.
For instance, when you have multiple sources of income and you simply cannot longer be efficient with managing your money, with paying taxes and being up to date with all the things you need to keep under control, you should start thinking about stepping to the next level. The more you contribute to the money circulation system, the more time, energy and value you spend. The system will reward you each time you actually get involved. Civilization evolves, systems evolve and money is no exception from the rule. So, in the past few years, people started focusing their attention on something bigger. Cryptomoney, the digital coin, ICO investments and everything related to it are now paramount for the society.
Cryptomoney are digital or electronic assets that have the purpose of mediating or acting as an exchange medium using cryptography to secure transactions and control the creation of new possible currency units. The major difference that Bitcoin has introduced to the market is that it promised to be a unique decentralized system that has no other headmaster other than the one who uses the service. It doesn’t mean that this is necessarily true. Any cryptocurrency system that considers itself classic and plays by the rule should be centralized, controlled and super-regulated. A non-regulated system will work less rightful and will destabilize the market or negatively influence users.
Full story at http://bit.ly/2ghaXft
Source: NewsBTC
Investment Alternatives To Deploy Your Cryptocurrency Needed, Says Algo 'Crypto-Asset' Manager
Crypto currencies have surged exponentially over the last few months to collectively reach close to US$150 billion in market capitalization. This has started attracting attention from fiat investors and regulators from around the world. And, everyone has their own opinion about whether these currencies are in a bubble or not.
As the "Big Daddy" and largest crypto currency by market cap, Bitcoin represents around 45% of the entire crypto currency universe. It has all the characteristics of a currency and aspects of being a commodity and a technology. It has limited supply, with less than 21 million Bitcoin ever being issued, can be used as a means of payment and a store of value.
But what is striking is the lack of investment vehicles available to crypto currency holders. Currently, they have the choice between holding crypto currencies and jumping from one to another - directly or through some dedicated funds - or invest in private equity/crowdfunding through Initial Coin Offerings (ICOs).
The first option, however, does not allow for significantly large volumes to be traded as the cryptocurrency market is still very fragmented. According to Stéphane Ifrah, CEO of French-based NaPoleonX, dubbed the first algorithmic crypto-asset manager, the second option is quite risky and “a large number of ICOs should fail - if we take the internet revolution as a benchmark in 2000’s.”
Full story at http://bit.ly/2gi7jSM
Source: Forbes
Wall Street Great Bitcoin Divide
Where Wall Street was once a united front in running the financials of America, and to an extent, the rest of the world, it is suffering a polarization as Bitcoin disrupts opinions.
As the digital currency keeps booming, investors, financial managers and major banking CEOs are finding themselves in different camps for different reasons.
The most recent championing move for Bitcoin has come from Goldman Sachs, a company that has slowly come around to the digital currency, as they are exploring a new trading platform that would be centered on trading Bitcoin and Ethereum.
This platform, which will be run by Chief Executive Lloyd Blankfein, comes just weeks after JP Morgan Chase CEO Jamie Dimon spewed vitriol about Bitcoin.
Full story at http://bit.ly/2gi7oWA
Source: CoinTelegraph
Bitcoin Metric Doesn't Lie, But It Obfuscates
For those wondering whether bitcoin is in a bubble, the crypto-converts have a answer: It's not. The price, they say, can go much higher.
The answer is not all that surprising, or new. But recently bitcoiners have latched onto a metric they contend proves their sky-high predictions are not based solely on blind belief or an ideological bent against organized governments or fear of a massive financial collapse. The metric is called the network value-to-transaction ratio, or NVT. Some have dubbed it bitcoin's P/E. And, at least in the community, it's becoming something of an industry standard valuation metric. At least two websites are devoted to showing the daily value of bitcoin's NVT, which, as of Wednesday, was 119. That's above its historical average, which in bitcoin land is about eight years of data, of 87, but well below its peak of well above 400. Bitcoin by this analysis still has room to run.
The question of whether bitcoin is in a bubble has come up before, but it has been getting louder and more frequent. The price is up 353 percent this year to a recent $4,330. The currency received a boost earlier this week from news that Goldman Sachs was considering launching a cryptocurrency trading desk, and a supportive quote for Goldman's CEO. It would be the first big bank to have dedicated bitcoin traders.
Full story at https://bloom.bg/2wE3kpO
Source: Bloomberg
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