Category Archives: investment

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Are The Rothschilds Investing in Bitcoin?

Recent developments appear to confirm that the Rothschild family have entered the cryptocurrency market, following earlier reports that they began purchasing the assets through the Bitcoin Investment Trust (GBTC) in 2017.

The Rothschild family are more well known for their close relations with banks and other financial institutions, rather than advocating for a decentralized currency system. It has been reported, however, that the family has been active in cryptocurrency trading for a sizeable period of time.

In the footsteps of Soros

This news follows George Soros’ apparent entry to the cryptocurrency market earlier this week. The Soros Fund Management enterprise was reported to have gained internal approval for the trading of virtual coins for asset management purposes. There are no known records of large trades taking place on behalf of Soros yet.

In January, Soros denounced cryptocurrencies as a ”bubble”, so his recent change in opinion came as a surprise to many. Following his negative labelling of digital currencies, Bitcoin was subject to a market devaluation of approximately 40%, leading some commentators to speculate if his comment was designed for this purpose.

It does raise questions that these high-profile individuals have chosen to enter the market at this point after the price crash, while no longer speaking in an openly negative way about Bitcoin.

These questions aside, the cryptocurrency market should benefit from an injection of new investment, and with financial moguls like Soros and the Rothschilds coming into play, this could create a momentum for more high-profile figures to join them.

It makes for an interesting development that might influence Bitcoin’s future, even if the impact has yet to be determined.

 

The post Are The Rothschilds Investing in Bitcoin? appeared first on BitcoinNews.com.

UK Financial Conduct Authority Warns Firms About Crypto Derivatives

The UK Financial Conduct Authority (FCA) has issued a warning to firms that deal with cryptocurrency derivatives, as they likely require authorization from the agency to do business.

Posted Friday on the official FCA website, the statement advised that cryptocurrency derivatives have the qualities necessary to be considered tradeable assets. As the statement reads, this means that firms involved with regulated activities using cryptocurrency derivatives are subject to FCA guidelines, as well as any relevant provisions indirectly applicable to European Union regulations.

Despite the FCA declining to acknowledge cryptocurrencies as either currencies or commodities in regards to regulation, the statement notes that it is ”likely” that firms offering cryptocurrency derivatives require authorization to do so.

This would potentially require companies holding initial coin offerings (ICOs) to comply with the FCA guidelines, although the statement noted that this would depend on the nature of the token offered.

Other areas outlined that would fall within the FCA’s regulatory parameters include cryptocurrency futures, cryptocurrency contracts for differences (CFDs) and cryptocurrency options.

The final warning of the statement precautioned firms that neglecting to authorize activities under the FCA’s regulation is a criminal offense. The statement finished, ”Authorized firms offering these products without the appropriate permission may be subject to enforcement action.”.

The FCA on the industry

In 2016, the FCA said that there were no plans in place to regulate the blockchain industry for the time being, as it needed what it described as space to develop.

However, the agency has been outspoken on its unfavorable view towards cryptocurrencies and ICOs. Chief executive of the FCA Andrew Bailey said in December 2017 that Bitcoin investors must be prepared to ” lose all your money”. He compared cryptocurrency investments as similar to gambling.

December 2017 also saw the FCA announce a further study into ICOs, scheduled to determine if there was a need for further regulatory action depending on the applicability of UK laws to the investment model of ICOs.

 

The post UK Financial Conduct Authority Warns Firms About Crypto Derivatives appeared first on BitcoinNews.com.

Japan: 14% Of Young Male Workers Have Crytpo Holdings

A recent survey conducted of working males aged 25-30 in Japan reveals that 14% of this group own some form of cryptocurrency, as first published by local online magazine Shin R25, on 3 April.

Despite media frenzy over Bitcoin’s recent plunge in value, this has not deterred the young working men of Japan from investing. The study surveyed 4,734 participants across Japan, between January and March of this year, with over a quarter of respondents reporting that cryptocurrency holdings constituted their first investment.

Of the participants surveyed that owned crypto, 92% noted that they entered the cryptocurrency market for investment purposes. This is indicative of recent investment trends in the younger generation, that see the group withdrawing from traditional forms of investment such as stocks and bonds.

The questionnaire surveyed these trends in investment for first-time buyers, finding 24.3% purchased their assets between October and December 2017, with 15% choosing to enter the market in either January of this year or later, as the value of Bitcoin decreased.

When questioned on the total sum of their investments, 34.5% recorded that they owned less than 50,000 Japanese Yen (JPY), approximately USD 469, while 10.2% said their holdings totalled JPY 1 million or more, approximately USD 9,360 and above.

In regards to the future plans with their holdings, 47.1% reported that they would like to actively invest in the market, with 34% saying they did not intend to continue investing.

Finance and cryptocurrency analyst Joseph Young noted on Twitter that even in such a leading cryptocurrency market as Japan, such a high figure of investment is surprising.

A study found that 14% of employees in Japan aged 20~25 years already invested in or hold cryptocurrencies like bitcoin and Ethereum.

This is a surprisingly high adoption rate, I expected less than 10%, even in a leading cryptocurrency market like Japan.https://t.co/MwJtjmf1KQ

— Joseph Young (@iamjosephyoung) April 4, 2018

If the younger generations continue to adopt cryptocurrency as a primary form of investment, this is likely to increase the aggregate value of virtual currencies such as Bitcoin. Head of the research department for Fundstrat Tom Lee, recently reiterated his prediction that bitcoin would end the year valued at USD25,000.

The survey follows the news in January of hackers infiltrating Japenese cryptocurrency exchange platform Coincheck. Approximately USD 534 million was stolen in the form of NEM tokens. The Japanese Financial Services Agency acted by sending business improvement notices to seven similar platforms and temporarily suspending operations of another two.

 

The post Japan: 14% Of Young Male Workers Have Crytpo Holdings appeared first on BitcoinNews.com.

Matthew Lynn – Gold Isn't Only Alternative To Paper Money

Matthew Lynn – Gold Isn’t Only Alternative To Paper Money:

In an article on Marketwartch, writer Matthew Lynn (@MattLynnWriter) describes how gold’s role as a store of value alternative to paper money will be seeing competition from digital currencies.  Excerpts:

“As the American [dollar] grows in strength — as seems likely given its relative performance compared with the rest of the world — then gold will be less valuable as an alternative.”

“Gold is nothing if not a long-term investment [however] the most important threat is the rise of alternative digital currencies such as bitcoin.”

“As a rival to paper money, gold has had the market to itself. Now it will have competition, and that always drives down the price of any product.”

“Financial sophisticates might dismiss digital currencies as a craze. But plenty of other industries have been taken apart by the Internet — there is no reason why the money market should be any different.”

“In many ways, digital currencies may be a better alternative to paper money than gold.”

 – http://www.marketwatch.com/story/the-real-threat-to-gold-is-digital-2013-07-17
 – http://bitcointalk.org/index.php?topic=257880.0 (Further discussion of the article)

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Matthew Lynn – Gold Isn't Only Alternative To Paper Money

Matthew Lynn – Gold Isn’t Only Alternative To Paper Money:

In an article on Marketwartch, writer Matthew Lynn (@MattLynnWriter) describes how gold’s role as a store of value alternative to paper money will be seeing competition from digital currencies.  Excerpts:

“As the American [dollar] grows in strength — as seems likely given its relative performance compared with the rest of the world — then gold will be less valuable as an alternative.”

“Gold is nothing if not a long-term investment [however] the most important threat is the rise of alternative digital currencies such as bitcoin.”

“As a rival to paper money, gold has had the market to itself. Now it will have competition, and that always drives down the price of any product.”

“Financial sophisticates might dismiss digital currencies as a craze. But plenty of other industries have been taken apart by the Internet — there is no reason why the money market should be any different.”

“In many ways, digital currencies may be a better alternative to paper money than gold.”

 – http://www.marketwatch.com/story/the-real-threat-to-gold-is-digital-2013-07-17
 – http://bitcointalk.org/index.php?topic=257880.0 (Further discussion of the article)

All News – Daily E-mail Subscription  – Twitter: @BitcoinNews

Matthew Lynn – Gold Isn't Only Alternative To Paper Money

Matthew Lynn – Gold Isn’t Only Alternative To Paper Money:

In an article on Marketwartch, writer Matthew Lynn (@MattLynnWriter) describes how gold’s role as a store of value alternative to paper money will be seeing competition from digital currencies.  Excerpts:

“As the American [dollar] grows in strength — as seems likely given its relative performance compared with the rest of the world — then gold will be less valuable as an alternative.”

“Gold is nothing if not a long-term investment [however] the most important threat is the rise of alternative digital currencies such as bitcoin.”

“As a rival to paper money, gold has had the market to itself. Now it will have competition, and that always drives down the price of any product.”

“Financial sophisticates might dismiss digital currencies as a craze. But plenty of other industries have been taken apart by the Internet — there is no reason why the money market should be any different.”

“In many ways, digital currencies may be a better alternative to paper money than gold.”

 – http://www.marketwatch.com/story/the-real-threat-to-gold-is-digital-2013-07-17
 – http://bitcointalk.org/index.php?topic=257880.0 (Further discussion of the article)

All News – Daily E-mail Subscription  – Twitter: @BitcoinNews

Matthew Lynn – Gold Isn't Only Alternative To Paper Money

Matthew Lynn – Gold Isn’t Only Alternative To Paper Money:

In an article on Marketwartch, writer Matthew Lynn (@MattLynnWriter) describes how gold’s role as a store of value alternative to paper money will be seeing competition from digital currencies.  Excerpts:

“As the American [dollar] grows in strength — as seems likely given its relative performance compared with the rest of the world — then gold will be less valuable as an alternative.”

“Gold is nothing if not a long-term investment [however] the most important threat is the rise of alternative digital currencies such as bitcoin.”

“As a rival to paper money, gold has had the market to itself. Now it will have competition, and that always drives down the price of any product.”

“Financial sophisticates might dismiss digital currencies as a craze. But plenty of other industries have been taken apart by the Internet — there is no reason why the money market should be any different.”

“In many ways, digital currencies may be a better alternative to paper money than gold.”

 – http://www.marketwatch.com/story/the-real-threat-to-gold-is-digital-2013-07-17
 – http://bitcointalk.org/index.php?topic=257880.0 (Further discussion of the article)

All News – Daily E-mail Subscription  – Twitter: @BitcoinNews

The Genesis Block – 2013 Mid-Year Bitcoin Review

The Genesis Block – 2013 Mid-Year Bitcoin Review:

https://docs.google.com/viewer?url=http://thegenesisblock.com/wp-content/uploads/2013/07/TGB-Bitcoin-Mid-Year-Review-and-Outlook-4.pdf

This report from The Genesis Block (@TheGenesisBlock) covers the major events from the first half of 2013 and what to look out for in the months ahead.  Excerpts:

“The one outlier in the global bitcoin trading story so far in 2013 has been CNY, with a meteoric rise from near obscurity at 1% in January to more than 6% of global volume at the end of June. This was largely attributable to a brief documentary about bitcoin aired on state-run CCTV.”

“Volatility has presented a number of exceptional arbitrage opportunities for traders. As macro events and news from different exchanges create unique trading dynamics, the price differential across exchanges can become quite significant.”

“As a smallmarket, bitcoin is still heavily influenced by individual micro events, but traders are clearly paying attention to major macro headlines as well.”

“We are also aware of three VC-backed exchanges currently in development.”

“The initial ASICMiner IPO was in August 2012 [raised] over $100,000 for initial ASIC production. As of this writing, shares are trading at 4.25 BTC each, providing initial shareholders a 4,250% return in 8 months and netting IPO investors millions of dollars in gains.”

“The US has unquestionably been the least accommodating with regards to virtual currency regulations. Throughout the rest of the globe, government responses have ranged from deferment to outright encouragement so far this year.”

“We expect more and larger retail players to enter the space, helping the value of the market continue to grow steadily.”

 – http://thegenesisblock.com/bitcoin-mid-year-review-and-outlook
 – http://bit.ly/1aJhEQs (PDF)  (Flash-based PDF Viewer)

All News – Daily E-mail Subscription – Twitter: @BitcoinNews