Even though most people don’t even know what they are, Bitcoins increased in value from about $570 to over $4,300 — an astounding 750% — in just the last year. Because of this huge return, more people are becoming interested in possibly owning some Bitcoins hoping to make a fast fortune. That would be very risky.
Money management firm VanEck has filed for a bitcoin ETF despite claiming that the digital currency was a ‘fad.’
Regardless of the recent user activated hard fork (UAHF), which saw the creation of bitcoin cash, bitcoin’s value has soared. Over the weekend, the digital currency jumped to over $4,000 for the first time, quadrupling its value since the beginning of 2017.
However, despite claims that bitcoin’s price is similar to the 17th century Dutch tulip mania, it appears the rising interest in the digital currency is presenting a high-risk opportunity that is too good to miss.
This is the case for VanEck.
According to a report from CNBC, Joe Foster, portfolio manager and strategist for VanEck’s flagship International Investors of Gold Fund (INIVX), he said that bitcoin would never ‘replicate or replace’ gold.
Bitcoin and other digital currencies are a fad that has attracted the attention of programmers, speculators, and early adaptors.
He added that he didn’t think governments would permit digital currencies to reach the level required to challenge fiat currencies, claiming:
At best, digital currencies may eventually occupy some middle ground as a niche product. At worst, they become a failed experiment that ends in tears.
Now, though, in a complete reversal, the money management firm has filed with the U.S. Securities and Exchange Commission (SEC) for a VanEck Vectors Bitcoin Strategy ETF. Initially investing in bitcoin future contracts it will trade on the Nasdaq.
Howard Marks, billionaire investor and founder of Oaktree Capital Management is adamant about his stance on cryptocurrencies like bitcoin, Ether and others: “They’re not real.”
Marks reiterated this three times to clients Wednesday in his latest Oaktree memo.
“I’d guess these things have arisen from the intersection of (a) doubts about financial security — including the value of national currencies — that grew out of the financial crisis an (b) the comfort felt by millennials regarding all things virtual,” writes Marks. “But they’re not real.”
Once you are part of the hype train with its wagons filled with: Ethereum, Blockchain, Technology, Bitcoin, Ico, Token, Price, market and other similar terms.. you will never go back.
All day you will be surrounded by debates of Want-to-be Traders/investors that are trying to get a small or big short-term success out of it, news of regulations done by Governments and so on and so forth.
As of right now, what keeps the crowd on the buzz are ICO-s (Initial Coin Offering) and how much they gather per/offering day. With Ethereum allowing to create your own token or the representation of a value – the so called “ERC20 TOKEN Standard” was created. A standardization of the token creation process.
A lot of them with promising technology, some with never-seen-before team supporting it are gathering millions in a couple of hours or days where you can offer a well known digital currency like lets say Bitcoin or Ethereum in exchange for a token of one sort. It is a show from the first-seat-row.
- From my stand point what makes people so hyped about ICO tokens, is that without any permission you can “invest” in any company/venture in any part of the world, and the Mind-Set supporting it:
“It is something different compared to what everybody else is doing – Early adopter – look at the technology and what it does – it is gonna blow up like Ethereum did”
The No Purpose Coins
What is interesting and that makes me love it: people making use of the hype train Creating Tokens that DO NOT DO ANYTHING at all and are still raising crowdfunds to support it. Joke Tokens.
Is blockchain the real deal?
In a recent interview for CNBC, Deepak Krishnamurthy, chief strategy officer for SAP, stated that SAP is adopting blockchain in a serious way for its supply chain management offerings. “We have the largest supply chain product in the enterprise software industry, so having blockchain supply chains connect with SAP supply chains is going to be value-creating for our customers,” Krishnamurthy said. SAP, with its Blockchain-as-a-Service solution, is betting on this new mode of conducting and storing transactions.
We are only in the earliest of early stages of this new approach. As Kevin Werbach, professor at the Wharton School of the University of Pennsylvania, reminds us, we are only at “2” or “3” on a 1-to-100 timescale. In a recent interview at Knowledge@Wharton, he observes that most people – even the most tech-savvy still don’t understand the technology behind blockchain. For example, many government agencies throughout the world have been closely tracking the growth and applications of Bitcoin, the virtual currency that is supported by blockchain. “Do most of these people understand the technology of Bitcoin?” he asks “No.” Likewise, among financial services giants such as Goldman Sacks that are diving into crypotcurrency as a service, there is little or no understanding of the fundamentals of underlying blockchain technology. Even people at the most technology-savvy organizations, such as Microsoft and Google, don’t have a fundamental grasp of the blockchain model.
Douglas Adams got it all wrong, it seems. The answer to the ultimate question of life, the universe and everything is not 42 — it’s blockchain, some will argue. Can the technology behind Bitcoin transform the world or should we take it with a grain of salt? We invited eight blockchain influencers to weigh in on its value and look beyond the hype.
Quite a few mainstream media outlets are suddenly showing an interest in Bitcoin and other cryptocurrencies. Over the past few years, most of the media attention has been rather negative. In recent weeks, several newspapers printed some pro-Bitcoin articles, which caught a lot of people by surprise. It appears this is occurring all over the world as of late, which is quite interesting to see.
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1. THE MOSCOW TIMES
The relationship between Russia and Bitcoin has always been a queasy one. Local legislators have never been too keen on cryptocurrency in general, even though they certainly see the value of blockchain technology. However, this situation has come to change for the better over the past few years. In fact, there are quite a few people who claim Russia feels cryptocurrency “is the future of finance.”