$$ BITCOIN RICHES -- IS IT FOR REAL? $$
The very wealthy, and large banking and investment institutions, are beginning to make their move into Bitcoin (BTC) and other cryptocurrencies. While they talk about the negatives of investing in cryptocurrencies, they meanwhile are positioning themselves as very major investors! Don’t believe it? Well, you need to read the rest of this article to see what is really going on behind the scenes. Pay more attention to what these folks are doing rather than listening to what they are saying. While they are saying one thing and depressing the price of cryptocurrencies so they can position themselves while prices are low, these savvy investors are getting in early and plan to rake in the major gains when they begin to tell everyone else how they need to jump onboard! This has happened time and again when a new and promising technology or innovation comes out. Are we in the midst of another technology revolution with blockchain and cryptocurrencies similar to what happened with computers in the 1980’s and 90’s? Or, with the internet since 1994? Or, with social media after 2000? And, with biotechnologies from the beginning? (i.e., think: MicroSoft, Cisco, Apple, Amazon, Google, Facebook, Amgen, etc.) Many people think we are in just that situation again with Bitcoin and cryptocurrencies, and here is some data to support that theory! If you don’t want to miss out on the potential Bitcoin run to investment riches, then keep on reading!
RECENT TECHNOLOGY ADVANCEMENTS IN FAVOR OF BITCOIN:
There has recently been some technology advancements that will greatly benefit Bitcoin. Today, Bitcoin transactions are very slow and fairly expensive. Bitcoin to date has also not been able to support ‘smart contract’ transactions as does its rival, Ethereum. But, that is now changing with the advent of the “Lightning Network” and “RSK.”
The Lightning Network is a “second layer” payment protocol that operates on top of a blockchain. It will enable fast and cheap transactions between participating parties which can settle to the bitcoin blockchain. Currently transactions can take several minutes and cost several dollars. However, with the Lightning Network transactions are expected to take microseconds and cost fractions of a cent.
The way it works is first two parties who wish to transact with each other set up a multisignature wallet (this requires more than one signature to enact a transaction). This wallet holds some amount of Bitcoin. The wallet address is then saved to the Bitcoin blockchain. This sets up the payment channel. Because the transactions are just between me and you, and don’t need to be broadcast to the whole network, they can take place almost instantaneously. And because there are no miners that need compensation, transaction fees are very low or even non-existent. In this way, two parties can now conduct an unlimited number of transactions without ever touching the information stored on the blockchain. With each transaction, both parties sign an updated balance sheet to always reflect how much of the bitcoin stored in the wallet belongs to each. When the two parties have finished transacting, they simply close out the channel, and the resulting balance is registered on the blockchain. In the event of a dispute, both parties can use the most recently signed balance sheet to recover their share of the wallet.
Although the Lightning Network was originally designed for Bitcoin, the technology is also being developed for other cryptocurrencies, such as Litecoin, Zcash, Ethereum, and Ripple. Litecoin plans to launch its version at the same time as Bitcoin’s. In March 2018, California startup, Lightning Labs, announced the launch of a beta version of its software, making available what investors and project leads say is the first thoroughly tested version of the technology to date.
RootStock (RSK) is a smart-contract peer-to-peer platform built on top of the Bitcoin blockchain. The goal of RSK is to add value and functionality to the core Bitcoin network via the implementation of sophisticated smart contracts as a sidechain. Smart contracts are an extremely powerful tool, and by far one of the most valuable innovations associated with blockchain due to the ability to create transactions between two parties without the need for any middleman. Inspired by the developers working on both Bitcoin and Ethereum, who have been developing technologies called the Lightning Network and Raiden Network, RSK has been building a similar technology called “Lumino.” The project is what RSK Labs co-founder Gabriel Kurman describes as a “combination” of these two networks so that it can work with RSK’s unique sidechains technology. Kurman said the finishing touches to RSK won’t be long coming to market.
Below are two YouTube video links and another link for your review. You owe it to yourself watch the videos and visit the link so you have an idea of the magnitude of the opportunity in front of you right now! Take no action and your window of opportunity for big gains may pass you by. Just like before with MicroSoft, Cisco, Amazon, Apple, Google, Facebook, and other incredible opportunities you may have missed, Bitcoin offers yet another chance to grab the golden ring!
Investment Bank or Institution
WHAT IS HAPPENING IN THE WORLD OF BITCOIN AS OF AUGUST, 2018:
Per a Forbes online article dated July 31, 2018, Northern Trust – a $10.7 Trillion Hedge Fund (Institution) is moving toward investing in Bitcoin. To this end, financial services giant Northern Trust has significantly expanded its work with blockchain and cryptocurrencies across multiple divisions. In addition to adding a number of new blockchain features for managing its private equity workflow, the company, has also quietly opened its fund administration services to a select group of hedge funds betting on Bitcoin and Ethereum. These actions amount to one of the most significant pushes into cryptocurrency, and other assets encrypted on a blockchain, by a traditional financial institution. The article can be read in full by clicking here:
Goldman Sachs came out with its mid-year 2018 economic outlook report. It said: “Bitcoin will likely continue to decline in price”… “Cryptos don’t meet the definition of money”… And as they only make up 0.3% of global GDP, “they garner far more traditional media and social media attention than is warranted.” But, we KNOW for a FACT Goldman Sachs is setting up its own crypto trading desk! A CNN online article dated May 3, 2018 states that Goldman Sachs will launch a Bitcoin Trading Desk. The New York Times also reports that the firm, one of the largest financial institutions in the United States, is preparing to begin using its own funds to sponsor a variety of investment contracts tied to the Bitcoin price and hopes to eventually trade “physical Bitcoins” directly. Goldman Sachs has been rumored to have been planning to set up a cryptocurrency trading desk since last December, but executives and other spokespeople claimed that those reports were false. Even as recently as April 23rd, when the bank hired cryptocurrency trader Justin Schmidt, the bank claimed that it had “not reached a conclusion on the scope of our digital asset offering.” However, the bank has now confirmed that it will begin offering its clients a type of futures contract called a non-deliverable forward that will be linked to Bitcoin. Eventually, the bank hopes to receive regulatory approval from the Federal Reserve and state-level authorities to begin trading actual Bitcoins. This taking place would undoubtedly define Bitcoin as a mainstream financial asset.
In August, 2018, Maerki Baumann, a private bank based in Zurich, Switzerland announced it will manage its clients’ cryptocurrency assets. This makes it the second Swiss bank to make such an announcement following Hypothekarbank Lenzburg (Hypi), which stated in June, 2018 that it would open business accounts for cryptocurrency companies. Switzerland is becoming a global hub for cryptocurrency and blockchain-related projects. SIX Group, the parent company of Maerki Baumann, announced last July that it will be launching a fully integrated digital asset infrastructure. Known as the “Swiss Digital Exchange,” this venture is set to open its doors early next year under the guidance and supervision of the country’s national financial regulator. Furthermore, the country’s wealthy town of Zug has been called “Crypto Valley” — a take on northern California’s famous “Silicon Valley” — due to the 200 to 300 individual cryptocurrency businesses it currently is host to. The bank, however, still cautions investors they do not condone investing in cryptocurrencies given their volatility and speculative natures. Really? Watch what they do more than believe what they say!
As of August 14, 2018, The Jamaican Stock Exchange (JSE) has announced that it will be collaborating with Canada’s Blockstation to deliver cryptocurrency trading to investors. The JSE announced on August 14th that it had selected Canadian financial tech company Blockstation to deliver crypto tokens to investors. This arrangement will provide investors the abliity to trade within a secure regulatory framework. The Canadian company was a favored choice for the JSE because of Blockstation’s end-to-end electronic communication network and order management, which are desirable qualities that will facilitate trading. Blockstation will also aid in the clearing and settlement of blockchain tokens for its broker-dealers and their investing clients. This partnership may place the JSE as one of the first international stock exchanges to deploy an online cryptocurrency and token trading platform.
As of August, 2018, Boerse Stuttgart, Germany’s second largest stock exchange, stated its plans to build an end-to-end infrastructure facilitating cryptocurrency trading. Back in April, the company announced that it would be launching a cryptocurrency trading application called Bison, scheduled to launch sometime in Autumn 2018. In addition to Bison, the company plans to introduce an Initial Coin Offering (ICO) platform which will facilitate the issuance of digital tokens. According to the press release, the platform will also make it easier to carry out ICOs in a transparent and standardized process. A fully-fledged trading venue, as well as a custody solution, are also in the planned pipeline, as Boerse Stuttgart’s intentions are to provide a comprehensive infrastructure offer for digital assets.
The news of Boerse Stuttgart, Germany’s second largest stock exchange, working on a fully-fledged infrastructure for cryptocurrency trading and custody follows similar development in the US. The parent company of the New York Stock Exchange (NYSE), the Intercontinental Exchange (ICE), announced August 3, 2018 that it has teamed up with major companies like Microsoft, BCG, and Starbucks to build a global digital asset platform called Bakkt. BAKKT.COM is supposed to launch in November. Along with enabling consumers to use Bitcoin and other cryptos at Starbucks, Bakkt will leverage the Microsoft cloud to create a regulated, digital asset ecosystem to buy, sell, store and spend digital currencies. Bakkt is expected to include federally regulated markets and warehousing along with merchant and consumer applications. Initially, Bakkt will focus on the trading and conversion of Bitcoin versus fiat currencies, given Bitcoin is currently the most liquid digital currency.
SBI Virtual Currencies is one of the 16 government-approved crypto exchanges in Japan. The company launched the VCTRADE crypto exchange service on June 4, 2018 with just the XRP/JPY trading pair. With Monday’s announcement, the exchange now offers three trading pairs: BCH/JPY, BTC/JPY, and XRP/JPY. (JPY is Japanese Yen. BCH, BTC, and XRP are cryptocurrencies.)
South Korea’s Banks hold crypto currencies. South Korea’s central bank, the Bank of Korea (BOK), has recently announced it is considering cryptocurrencies and blockchain applications in its project for a “cashless society,” local news TokenPost reported May 1, 2018. As of July, 2018 a new report by South Korea’s central bank claims it has found that local financial institutions are still lukewarm to cryptocurrency – despite holding close to $2 billion worth of digital coins. An investment analysis of 2,530 residents aged 25 to 64 showed that 13.9 percent of those surveyed held crypto coins. That figure increased to almost 20 percent for those only in their 20s.
In April, 2018 Barclays, the British investment bank, teamed up with Coinbase.com. Coinbase, one of the world’s biggest cryptocurrency exchanges and provider of digital wallets, obtained a bank account with Barclays. The deal marks the first major partnership between a U.K. bank and a cryptocurrency exchange. With this, Coinbase also now has an e-money license and access to the Faster Payments Scheme. The most noticeable update will be faster payments from Coinbase for U.K. customers.
In July, 2018, Barclays filed two patent applications relating to the transfer of digital currency and blockchain data storage, both published by the U.S. Patent and Trademark Office. The first patent describes a system for transferring digital currency from payer to recipient that would securely authenticate the identities of both, as well as validating and recording transactions using public-key cryptography and a digital currency ledger. The second patent relates more narrowly to storing and endorsing data and claims relating to specific entities, using the validation of personal information for Know Your Customer (KYC) checks as a key example. It seems that Barclays is going into cryptocurrencies!
CBOE’s Cryptocurrency ETF will likely be approved between Sept 30, 2018 and 1Qtr, 2019. The United States Securities and Exchange Commission (SEC) is examining an application from the Chicago Board Options Exchange (CBOE) Global Markets which, if approved, could grant the company a highly coveted bitcoin ETF license, and bring new waves of institutional investors to the Bitcoin arena. The process began in June 2018, when the SEC sought comments from industry professionals regarding the proposed ETF being offered through the VanEck SolidX Bitcoin Trust – a joint venture between financial firms VanEck and SolidX. The application is the Trust’s third attempt to obtain any such license; the first two attempts were rejected in early 2017, upon which the SEC released the following statement: “Based on the record before it, the Commission believes that the significant markets for bitcoin are unregulated. Therefore, the Commission does not find the proposed rule change to be consistent with the Exchange Act.” The cryptocurrency space remains largely unmonitored, and the SEC has sought to take a firm stance to ensure consumer protection and safety. After much debate and speculation, however, officials recently decided that both Bitcoin and Ethereum were too decentralized to be considered securities, and could not be regulated by the organization. Regulators of the SEC also announced in late June that they were working on an outline for newer (and less- restrictive) legislation regarding open-ended and low-risk ETFs to increase innovation in the financial space. This could potentially boost the Trust’s chances, along with others seeking to establish Bitcoin ETFs in the future. If the VanEck SolidX application moves forward, clients will be able to purchase shares in the Trust, which are worth approximately 25 Bitcoins each at this time. Following a period of speculation from interested professionals, the application has now been published for public viewing and commentary, so regulators can better understand if the venture is worth acting on. “The ETF, under normal market conditions, will use available offering proceeds to purchase Bitcoin primarily in the OTC markets without being leveraged or exceeding relevant position limits,” the Trust’s application reads. It also states that an insurance policy will be set in place, should theft or cyber attacks occur. Thus, investors can rest assured that their funds will be covered in the event of a loss: “The insurance policy will carry initial limits of $25 million in primary coverage and $100 million in excess coverage, with the ability to increase coverage depending on the value of the Bitcoins held by the Trust.” Several financial giants have commented that Bitcoin-based ETFs are crucial to financial innovation, with companies like JP Morgan calling them the “holy grail for owners and investors” back in February 2018. Should CBOE’s ETF application be passed, client investment options will open in the first quarter of 2019. The SEC is due to make a decision by September 30, 2018.
George Soros has reportedly given the green light to his $26 billion family office to buy cryptos.
Billionaire investor, Steve Cohen, who has one of the best hedge fund track records of all time, has just invested in Bitcoin for the first time. According to a Fortune article published July 12, 2018 Cohen has invested in cryptocurrency-focused hedge fund Autonomous Partners through his venture capital firm, Cohen Private Ventures. Autonomous Partners was founded last December by Arianna Simpson, a venture capitalist with a history in the Bitcoin space, including a time at Bitcoin wallet startup BitGo. Her crypto fund has already secured investments from big names including Coinbase CEO Brian Armstrong, Union Square Ventures, and Craft Ventures.
The Rothschilds are said to be dumping stocks and buying cryptocurrencies. This particular banking family is best known for their close-knit ties with central banks and other financial institutions. As such, one wouldn’t expect them to give Bitcoin a second glance. In reality, it seems this family has been active in cryptocurrency trading for quite some time now. The first rumors began surfacing back in 2017 when Rothschild began purchasing cryptocurrency through GBTC (Bitcoin Investment Trust). Buying into a major Bitcoin Trust is pretty significant for this family!!
Doug Casey, of Casey Research —who told financial analyst Teeka Tiwari that if he ever started a hedge fund, he’d be the first investor—has invested his first $100,000 in cryptocurrency.
Per Teeka Tiwari, Porter Stansberry, of Stansberry Research, has invested $50,000 in cryptocurrency.
Billionaire, Marc Lasry has said to have invested $16.8 million in Bitcoin. A CNBC article dated July 18, 2018 says Marc has predicted the price of bitcoin could reach up to $40,000 as it becomes more mainstream and easier to trade. Lasry is said to have expressed regret about not buying bitcoin sooner, saying he should’ve bought the cryptocurrency when it was at $300 just a couple of years ago. Lasry’s day job is running the distressed debt investment firm that he helped start, Avenue Capital Group, which has about $9.6 billion in assets under management. But, he said his Bitcoin investments were made with just his personal money. Lasry expects Bitcoin will have the most benefit for investors out of all the cryptocurrencies, saying, “The reason why I like Bitcoin is because it’s the one everybody is going to come to.”
John McAfee (of McAffe Antivirus) the cybersecurity expert still holds on to his bet that Bitcoin (BTC) will be valued at $1 million by 2020. McAfee said, “I absolutely stand by the million-dollar prediction. It is still two and a half years away, in which two things will happen: Bitcoin will continue to grow, and the U.S. dollar and other fiat currencies will devalue.”
McAfee is not alone in being so radically optimistic about the fintech market. Danial Daychopan, CEO of Plutus, a Bitcoin platform, told Newsweek: “The overall trend in the value of Bitcoin is still heading north.” “Bitcoin is a good unit of account, and unlike gold, it’s the perfect unit of exchange. This is a fundamental fact. We’re going to see overall growth of the Bitcoin price by the end of the year: I predict the value of Bitcoin may reach £30,000, the year after £50,000,” Daychopan added. Only time will tell if McAfee and Daychopan are right.
Today, it is estimated there is about $100 Trillion dollars in the world markets. $45.5T in banks, $45.5T in Institutions, and the difference in other markets. Consider this: if only 5% of this money flows into cryptocurrencies the value of Bitcoin will be in excess of $100,000/coin!