By Clare Dickinson January 18, 2018
Intercontinental Exchange has launched a data feed for bitcoin and other virtual currencies, as the world biggest financial institutions start to build a professional framework for trading the volatile assets.
ICE Data Services has teamed up with Blockstream — which provides blockchain technology, a type of distributed ledger that backs virtual currencies — to offer the real-time feed from 15 trading venues.
It will include leading cryptocurrencies measured against the US dollar and other major currencies, according to a statement from ICE, the owner of the New York Stock Exchange.
Lynn Martin, the president and chief operating officer of ICE Data Services, said: “With the broad array of cryptocurrencies and exchanges, and given the price variances between exchanges, it’s critical that investors have a comprehensive source of pricing information.”
The move by ICE comes shortly after two of its rivals, CME Group and Cboe Global Markets, launched trading in futures contracts. And this week Goldman Sachs’s chief financial officer R. Martin Chavez said on the bank’s earnings call that it is aiming to offer clearing in the contracts after receiving requests from clients.
More at: US exchange giant launches cryptocurrency data feed – Financial News
By Izabella Kaminska January 11, 2018
In an interview with Fox Business on Tuesday, JP Morgan CEO Jamie Dimon back-pedaled on his September claim that bitcoin is a fraud “worse than tulip bulbs”.
He said “he regretted” making the remarks because they dismissed the technology in broad terms, adding “the blockchain is real. You can have crypto yen and dollars and stuff like that.”
It’s not clear how much of the U-turn was prompted by the highly personalised hate campaign run against him on social media by crypto promoters. What is worth noting is Dimon’s especially apologetic stance towards “blockchain”, the technology that underpins cryptocurrency and which financial institutions are heavily investing in in a bid to revolutionise settlements.
According to Bloomberg, Dimon “believes in blockchain” — a turn of phrase that speaks volumes about the state of the technology being advocated.
As argued here, however, “blockchain” as a phrase is entirely meaningless. For the most part it is just a bundle of pre-existing technologies brought together in a cryptocurrency context to solve a problem most of the regulated financial system does not have: a lack of trusted intermediaries.
Aside from solving that very specific issue — and doing so extremely expensively — blockchain achieves little beyond the novelty of broadcasting transactions publicly and pseudonymously in a way that achieves ledger immutability.
More at: Why blockchain is a belief system – FT Alphaville
By Izabella Kaminska January 12, 2018
A thing that can often be heard said these days is that central banks should tap blockchain technology to launch their own crypto coins.
But there are many reasons why such talk is misleading and distracts from the key issues at hand.
- In its simplest interpretation, talk of crypto fiat issuance is almost certainly a euphemism for something else: the expansion of a central bank’s digital balance sheet to every single person. Yes, really.
- If, however, central banks really wanted to provide digital access to their balance sheets to every single person they could have done so years ago using existing technologies. Blockchain, whatever flavour it comes in, is entirely unnecessary for accomplishing this objective.
More at: Crypto fiat coin confusion – FT Alphaville
By Susan Corcoran Warner January 9, 2018
Make no mistake, Bitcoin, its forks, and Altcoin cousins are very volatile assets. I reluctantly call them assets because traditional currencies rarely fluctuate 40% in either direction on a daily basis. However, these wild swings also provide an opportunity for great capital appreciation – and losses. The lure is that just about anyone can make money in this market if they are aware of the risks involved, know to trade in volatile asset classes (straddle or strangle anyone?), and don’t mind being prepared to lose all capital at risk.
Over the past year, cryptocurrency has come out of the shadows and into the limelight. It is now more accessible, with market makers, such as Coinbase, allowing people to trade in “satoshis” or fractions of crypto assets thereby making buying them accessible to anyone willing to invest $100.00.
ICOs – or Initial Coin Offerings – are another innovation born out of the increasing popularity of cryptocurrencies and the utility of the underlying blockchain technology that makes it all happen. ICOs are very similar to IPOs except for the utility and cryptocurrency that is sold. This factor makes ICOs more versatile than traditional stock offerings. In 2018, ICOs will continue to grow and we are bound to see some never-before-seen business models and use cases for smart contracts in what some predict could disrupt the traditional business model.
More at: FORMER CFTC REGULATOR MAKES SENSE OF VOLATILE CRYPTO ASSET MARKET – HuffPost
By Paul Denlinger (Quora, Contributor) January 9, 2018
Are distributed blockchain economies where technology is taking us now? originally appeared on Quora: the place to gain and share knowledge, empowering people to learn from others and better understand the world.
Answer by Paul Denlinger, worked at Forbes, on Quora:
Are distributed blockchain economies where technology is taking us now?
We seem to be heading in that direction, but there is something which has not been sufficiently discussed.
One of the underpinnings of government and the modern nation-state is a national currency and central bank. The blockchain and cryptocurrencies directly challenge this, and because the police force and military are directly aligned with the government, and are how the government exerts its authority domestically and internationally when force is necessary, removing them would have dire consequences.
More at: Are We Moving Towards Distributed Blockchain Economies? – Forbes Tech #GettingBuzz
By Tae Kim January 9, 2018
Jamie Dimon says he regrets calling bitcoin a fraud and believes in the technology behind it
- J.P. Morgan Chase CEO said he regrets calling bitcoin a fraud.
- “The blockchain is real,” Dimon tells Fox Business.
- Dimon remains concerned about how “governments are going to feel about bitcoin when it gets really big.”
J.P. Morgan Chase Chairman and CEO Jamie Dimon is backpedaling a bit on his earlier criticisms on cryptocurrencies.
In September, Dimon called bitcoin a fraud. “I regret making” that comment, he said Tuesday on Fox Business.
“The blockchain is real,” Dimon added in the interview. “You can have cryptodollars in yen and stuff like that. ICOs … you got to look at every one individually. The bitcoin was always to me what the governments are going to feel about bitcoin when it gets really big. And I just have a different opinion than other people.”
More at: Jamie Dimon says he regrets calling bitcoin a fraud – CNBC
By Everett Millman January 8, 2017
Cameron and Tyler Winklevoss are a pair of Harvard-educated Olympic rowers who gained notoriety by successfully suing Mark Zuckerberg, the founder and CEO of Facebook, for essentially stealing their intellectual property while the three attended college together. (A dramatized account of how this legal battle began was portrayed in the film The Social Network.)
Now they are better known for their massive investment in bitcoin.
The Winklevoss twins—who are identical twins and sometimes sarcastically called “the Winklevii” collectively—not only won a $45 million settlement in the Zuckerberg case, but also received a significant portion of their award in Facebook stock rather than cash. Those shares eventually grew to a $300 million fortune.
The twins are now venture capitalists, and they recently generated renewed media attention by becoming some of the first well-known “Bitcoin Billionaires.” A glowing profile of the Winklevoss twins in the New York Times confirmed that the brothers bought over 100,000 BTC years ago, when the price was about $10. They claim to have held onto their entire principal investment. That would make their position worth nearly $2 billion.
More at: Winklevoss Twins Bitcoin Folly – Gainesville Coins News