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Factors That Will Push Bitcoin’s Price Higher Are Gathering Steam

· June 12, 2018 · 10:30 pm

The hacking of exchanges and relentless attacks from financial powers have, in the short run, adversely affected the price of Bitcoin. However, once the news about these adverse effects fades, investors will be able to turn their focus to several bright ongoing developments.


What Doesn’t Kill Bitcoin Makes It Stronger

The recent spate of crypto exchange hacks, ongoing regulatory issues, and reports of an investigation into possible price manipulation have sent the price of Bitcoin – and nearly every other cryptocurrency – tumbling. Despite these setbacks, the growing consensus is that, given Bitcoin’s inherent resiliency, developments taking place in both technical and financial arenas will enable Bitcoin’s value to retake its ascending trajectory with even greater intensity.

For example, frequent exposure to hacking will eventually make Bitcoin and other cryptocurrencies immune to such attacks. As Forbes put it, hacking may be adversely affecting Bitcoin in the short term, but in the future, the cryptocurrency will rise stronger as a result. In this regard, Christian Ferri, President and CEO of BlockStar, declared:

As in every technology, hacking will be painful for some in the short term; but it will be a major driver in strengthening the crypto ecosystem, making it more secure, which is key for mass adoption.

Moreover, giant financial actors, including exchanges and big banks, are investing heavily and hiring talent to build Bitcoin trading capabilities.

For example, NASDAQ is planning to launch a futures market for cryptocurrencies. In fact, the stock exchange has already joined forces with Gemini, a digital asset exchange, to improve market surveillance to detect market manipulation and fraudulent trades. Additionally, a NASDAQ-powered cryptocurrency exchange platform – DX.Exchange – will be launched sometime this month.

In parallel, The New York Times reports that ICE, the parent company of the New York Stock Exchange (NYSE), is working on its own online trading platform that will allow large Wall Street investors to trade cryptocurrencies.

Goldman Sachs is already ahead of the curve, having begun offering clients the ability to trade Bitcoin futures via one of its New York desks last month. According to The New York Times:

Goldman will begin using its own money to trade Bitcoin futures contracts on behalf of clients. It will also create its own, more flexible version of a future, known as a non-deliverable forward, which it will offer to clients.

Bitcoin Transactions Becoming Cheaper and Faster

Bitcoin Transactions Becoming Cheaper and Faster

On the technical side, Bitcoin has already advanced significantly in solving a key issue – scalability. Technological improvements that include SegWit, Lightning Network, and Atomic Multi-Path Payments over Lightning, and now Bitcoin Core 0.16.0, are already solving the issue of scalability and transaction fees costs.

Recently, Bitcoin enthusiasts celebrated the launch of Bitcoin Core 0.16.0, which among novel features, introduced full support for SegWit. Prominent Bitcoin exchanges, such as Coinbase and Bitfinex immediately started to implement SegWit and, as a result, transaction fees are now lower and faster, thus facilitating near-instantaneous low-value Bitcoin payments. At the present time, nearly 40% of all Bitcoin transactions are processed using SegWit.

In addition to SegWit, many exchanges are using a new technique to increase efficiency – batching transactions. Batching further increases the efficiency of Bitcoin transactions by over 75 percent by clustering multiple outputs into a single transaction.

For a digital currency that has “died” 300 times and counting, Bitcoin’s future is looking pretty bright, indeed. Innovative techniques are making Bitcoin transactions more efficient, and its exposure to hacking attempts will make it stronger. Lastly, major financial institutions are becoming increasingly interested in trading Bitcoin. These are crucial factors that are amalgamating to drive Bitcoin’s value to new highs.

What do you think are the main factors that will eventually drive Bitcoin’s value higher? Let us know in the comments below.


Images courtesy of Shutterstock

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Money20/20 Panel: Integrating Blockchain Into Mainstream Business

Source: bitcoin

Money20/20 Panel: Integrating Blockchain Into Mainstream Business

On Sunday afternoon at the Money20/20 Conference in Las Vegas, a panel of industry experts discussed the exciting potential of blockchain applications and the array of solutions being developed to meet the needs of a wide number of players. Panelists urged the packed auditorium to take a serious look at the quickly evolving cryptocurrency technology space, and honed in on the need to lower settlement costs and times.

Also read: Money 20/20: BitPay Announces New Mobile App

Much like the internet of the early 1990’s, blockchain applications can potentially open up an entirely new ecosystem for digital project deployment. Financial services firms are increasingly aware of this opportunity and issue.

Money 20/20 Panel: Which Mainstream Firms Use the Blockchain?

Overstock.com is one organization taking a lead in this realm. Through trading their stock on a blockchain, settlement times are reduced to 10 minutes. Judd Bagley, director of communications at Overstock, pointed out the power of exponential change ushered into the financial services industry by blockchain technology:

“Most tech changes only affect point marginally. This isn’t a small matter of degree, this is orders of magnitude difference. A 90% reduction in cost.”

Such cost reductions make a real business case for blockchain technology to financial services providers such as payment processors looking to cut costs.

By 2017, Overstock will have established a beachhead for blockchain-based equities trading, but will in-turn need to convince others to join the t0 platform. Through eliminating counter-party risk in times of panic, such as the Great Recession in 2008, or the Flash Crash of 2010, opposing parties can leverage shared ledgers to ensure the accountability of an opposing party.

Emmanuel Aidoo, Director of Investment Banking Technology at Credit Suisse, pointed out how much capital is stifled by being locked up in the slow, overhead intensive traditional systems. Credit Suisse has a lot of legacy in these traditional systems, and needs to figure out how to merge with blockchain in the with existing cloud and internal IT solutions.

Many industry players’ hard work is beginning to pay off, as blockchain technology applications have moved towards launches and direct proofs of value. For example, IBM is using blockchain technology to show that transparency provided through a blockchain enables for quicker dispute resolution in for food quality intake tracking on Chinese supply chains.

Jacob Farber sampled things through pointing out that all blockchain application can move beyond Bitcoin towards pointed gateway applications to be implemented within financial systems.

“We went from Bitcoin, what’s that? To, Bitcoin,watch it,” Farber said. “And now, to an assumption now that blockchain technology will be deployed, it’s just about how and where.”

Initiatives such as the R3 consortium, made up of over 50 banks, large financial institutions now collaborating on massive scales to research the potential applications of blockchain technology.

So where are we in the hype cycle, you may ask? Yolanda Goettsch, Vice President and Associate General Council at NASDAQ  was rather optimistic.

Estonia, for one, is a leader in collaborating for instituting blockchain applications, as shareholder voting in a use case in the NASDAQ-operated region. NASDAQ’s Linq platform already enabled a successful trade of shares from Chain.com to a private group of investors last December. Through eliminating processes that are done manually, reconciliation costs are lowered as peer-to-peer, real time information on a distributed ledger can increase efficiencies for many parties.

Furthermore, according to Goettsch, two-thirds of banks are working on commercializing blockchain tech by 2019, with many proof of concepts will go into production within the next 2 years, may take 5-8 years.

The panel painted a rather optimistic future for adoption of blockchain technology. Large players are rightfully looking towards the technology to offer a competitive advantage, increase security, and scale with the experimental blockchain infrastructure in development. Exciting questions are additionally raised around crowdfunding projects and their relation to these initiatives.

What are your thoughts about the increased adoption of blockchain technology? Share your thoughts in the comments below!


Images courtesy of Ryan Strauss.

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Money20/20 Panel: Integrating Blockchain Into Mainstream Business

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Are the Winklevoss Twins Bringing the Bitcoin Price Back Up?

Source: bitcoin

Winklevoss

The bitcoin price is back up! Following a scary and wavering period of political turmoil and financial devaluation, bitcoin has returned to $670 USD and beyond at press time.

Also read: Bitcoin Price Down, But Gaining Popularity in UK Following Brexit

Bitcoin is getting people excited again, and the reasons for the rise are likely due to several factors.

For one thing, the Brexit vote has come to an end. Britain is leaving the EU, and while anti-Brexit petitions are in the mix, no move has been made on those yet.

In that time, bitcoin encountered its heaviest drop in recent days, but trading among British investors and cryptocurrency hounds was at an all-time high, according to  Jesse Powell of San Francisco-based bitcoin exchange Kraken.

Trading was at its highest point within 24 hours of the Brexit vote, and many UK residents seemed eager to switch their savings to something they thought was a little more “trustworthy” (the British pound had fallen 10 percent against the U.S. dollar in that time).

Now that the vote is over, bitcoin looks to be rebounding, but another reason may have to do with those ever-popular Winklevoss twins, made famous in the Oscar-winning production, The Social Network.

Winklevoss Bros Bringing the Bitcoin Price Rally?

Cameron and Tyler are now making headlines with their new Winklevoss Bitcoin Trust, which has recently switched to BATS Global Markets.

Still headed for a listing on the Nasdaq, the Securities and Exchange Commission confirmed last Wednesday that the organization will now be a choice among popular ETFs, as the exchange executed nearly 25 percent of US ETF trading last May.

If the Winklevoss twins get their way, the exchange will be the first SEC-approved and regulated bitcoin platform, and will trade under the ticker symbol COIN. Naturally, the Twins’ primary exchange Gemini (based in New York), will serve as the trust’s custodian.

“We are excited to add the Winklevoss Bitcoin Trust,” explains Laura Morrison, present head of BATS.

A little publicity Winklevoss-style always seems to get bitcoin ahead in the record books, and this scenario is no exception. Whether bitcoin will rise beyond $700 remains to be seen, but the digital currency does appear to be attempting its long trek up the financial mountain yet again, and we can only wait and see where things lead in the coming months.

How fast will the bitcoin price rise again? Post your thoughts and comments below!


Images courtesy of Brian Snyder via Forbes, CNBC.

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Are the Winklevoss Twins Bringing the Bitcoin Price Back Up?

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2015: The Year Nasdaq Met The Blockchain

Source: bitcoin

2015

2015 ended with big news on the Bitcoin front. The Bitcoin company Chain used the Nasdaq Linq platform to “digitally represent” a record of ownership on a private blockchain. Nasdaq had announced its debut blockchain platform in May.

Also read: Nasdaq Partnership with Chain Marks a New Trend 

In October, Nasdaq announced its initial private clients for its blockchain platform: Chain.com, ChangeTip, PeerNova, Synack, Tango and Vera. Nasdaq also unveiled its first-ever demonstration of blockchain technology at the Money 20/20 event in Las Vegas.

“The first platform of its kind, Nasdaq Linq is a digital ledger technology that leverages a blockchain to facilitate the issuance, cataloging and recording of transfers of shares of privately-held companies on The NASDAQ Private Market,” the company stated in October. “It will complement ExactEquity, NASDAQ Private Market’s cloud-based capitalization table management and stock plan administration solution.”

The purpose of Nasdaq Linq is to provide clients with an accurate and detailed historical record of securities issuance and transfers.

“We are extremely encouraged by the initial demand for Nasdaq Linq from these innovative, first-mover companies, and the validation it represents of our application of blockchain technology,” said CEO of Nasdaq, Bob Greifeld, at the time. “Blockchain applied to the private market is innovation built on top of innovation, and carries with it the opportunity to forever alter the future of financial services infrastructure.” During 2015, Nasdaq also looked to manage proxy voting with blockchain technology in Estonia.

Throughout the year, the company partnered with some of the leaders of the Bitcoin industry. Chain.com leads blockchain infrastructure services for financial institutions and enterprises. ChangeTip enables people to tip other people online using Bitcoin. PeerNova allows cryptographic ledgers and data solutions inspired by the blockchain. Synack is a cyber security company built on their patented Crowd Security Intelligence™ model. TangoMe, Inc. is a free mobile messaging app with over 300 million registered members. Vera, a “first-of-its-kind”, allows businesses to secure and track digital information across platforms and devices.

The company partnered with Chain and Changetip to design a Nasdaq-created private blockchain platform.

“We believe this successful transaction marks a major advance in the global financial sector and represents a seminal moment in the application of the blockchain technology,” Nasdaq CEO Bob Greifeld said.

A leading provider of trading, clearing, exchange technology, listing, information and public company services on six continents, there’s no doubt that Nasdaq represents one of the biggest players in the Bitcoin industry. Nasdaq houses over 3,600 listed companies with a market value of about $8.8 trillion.

Before Nasdaq had announced its plans to adopt blockchain technology, Bitconist.net theorized how the technology could fuel Wall Street.

What do you think about this latest development from Nasdaq? Let us know in the comments below!


Images courtesy of Nasdaq

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2015: The Year Nasdaq Met The Blockchain

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