Srp 17

Japan’s Biggest Social Network LINE Launches $10M Blockchain Investment Fund

Yet another blockchain investment fund is set to launch in South Korea. Messaging giant Line furthers its foray into the field of cryptocurrencies and is dedicated to streamlining early-stage startup investments with a $10 million fund. Additionally, the company announced the successful listing of TRON to its cryptocurrency exchange.


South Korea Sees Serious Investments in Blockchain

Line, the Japanese messaging company harboring over 200 million users announced August 15, that is set to launch a $10 million investment fund through its Korea-based blockchain subsidiary Unblock Corporation.

Silicon Valley Philanthropists Dig Deep into their Crypto Wallets during Fundraising Event

With this initiative, LINE will become one of the very first publicly traded companies to formalize investments in tokens through a dedicated corporate fund. The fund aims to “boost the development and adoption of cryptocurrencies and blockchain technology.” Furthermore, the announcement also made it clear that the fund is “expected to expand in the future.”

Just yesterday Bitcoinist reported that the government of South Korea has budgeted upwards of 1 trillion won with a “focus on promoting big data and AI, developing blockchain technology to ensure data management security and boosting the share economy.”

TRON Listed on BitBox

Earlier in June, Line announced that it will launch a cryptocurrency exchange through its Singapore-based subsidiary. The venue dubbed BITBOX is already live and has listed TRON to its lists of available cryptocurrencies.

TRON (TRX) has become the very first coin project which has managed to pass BITBOX’s review process carried out by their open-listing committee.

As a celebration for TRX’s listing on the cryptocurrency exchange, a total of 9 million TRX coins will be airdropped to BITBOX’s users in an event which runs until August 22nd.

Speaking on the matter, Youngsy Ko, CEO of LINE’s subsidiary in Singapore, which operates the cryptocurrency exchange said:

Integrating TRON (TRX) with BITBOX will enable us to connect with the world’s fastest-growing blockchain project. […] TRON has a solid tech platform, especially know it has joined forces with BitTorrent.

Tron’s Justin Sun acquired BitTorrent on June 11.

What do you think of Line’s increased interest in the field of cryptocurrencies? Don’t hesitate to let us know in the comments below!


Images courtesy of Shutterstock

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Srp 15

New Transport Layer bloXroute Promises to Solve Bitcoin’s Biggest Problem

bloXroute Labs and a team of Northwestern University students believe Bitcoin’s biggest problem, scalability, can be solved without affecting its chief virtue — decentralization.

Northwestern and bloXroute Labs Are Working to Solve Scalability Issue

Critics have always identified the limited number of transactions that Bitcoin’s 00 network can process as its most significant problem. They point out that this is what has prevented Bitcoin from becoming the most effective form of payment in the world.

Several techniques have been and are currently being implemented to address the issue of scalability and high transaction fees. Nevertheless, they are not good enough to compete today with Visa, for example.

bloXroute Labs identifies the problem that affects Bitcoin and other cryptocurrencies’ networks, as follows:

Specifically, they employ a trustless P2P network model to propagate transactions and blocks, which does not scale as the volume of transactions increases, a fact research has shown time and again. Indeed, if blocks and transactions were to be instantly propagated, immense blocks could have been mined at a rapid pace, until the limitation of designated processing units and flash storage arrays was reached.

Now, a team comprised of bloXroute Labs engineers and students and academics of Northwestern University believe they have found a trustless scheme to overcome this scalability bottleneck.Now, a team comprised of bloXroute Labs engineers and students and academics of Northwestern University believe they have found a trustless scheme to overcome this scalability bottleneck. According to Watch Market:

The Northwestern University proposal attempts to address some of those issues by creating an infrastructure that compresses the information on the blockchain before sending, with the propagation being it will go faster.

In this regard, bloXroute Labs proposes bloXroute, a transport layer that would run underneath, allowing Bitcoin and all cryptocurrencies to scale to thousands of chain transactions per second.

According to the whitepaper entitled bloXroute: A Scalable Trustless Blockchain Distribution Network,”

“bloXroute allows to safely increase the block size and to cut down the time interval between blocks, without increasing the risk of forks, and provides real-time support for immediate transactions with zero-confirmation (0-conf).”

The whitepaper stresses that by using bloXroute, the network becomes even more decentralized because it requires neither consensus nor a protocol change beyond adjusting system parameters.

Technological Advances Are Fueling Bitcoin Optimism

Novel technological initiatives that include SegWit, Lightning Network, and Atomic Multi-Path Payments over Lightning, and new features in Bitcoin Core 0.16.0, are also promising to help to address Bitcoin’s scalability issue.

For example, Lightning Network is growing and enabling faster transactions among nodes. As of this writing, Lightning Network boasts over 3,000 nodes, with a capacity of about 82 bitcoins.

The Northwestern University team started working in this project in March 2018, and claims to be moving forward to solving the scaling issue. According to Sarit Markovich, professor of strategy at Kellogg School of Management at Northwestern University,

“We are scaling at 100 times better than what Bitcoin 00 is doing now. And we are hoping for 1,000.”

Do you think the newest technological innovations are helping to solve cryptocurrencies’ scalability issues? Let us know in the comments below!

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Images courtesy of Pixabay, Wikimedia/by Rdsmith4

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Srp 13

Soaring ICO Failure Rate Sees Investors Flock to ‘Bigger Players’

ICO failure rates are increasing. However, there seems to be a trend of fewer projects receiving bigger sums. Due to regulatory pressure, ICO bans, and a bear market, investors seem to be taking a new strategy to funding blockchain projects.


ICO Failure Rates Surge

There is new evidence to suggest that one in two Initial Coin Offerings (ICOs) failed in Q2 of 2018, while those that succeeded suffered huge loses. This is according to the agency, ICORating, whose data suggests 55% of ICO’s failed to complete in Q2 of 2018.
Last Call for 3 Must Buy ICO’s in 2018

The difference in returns between Q1 and Q2 is significant. In Q1, ICOs enjoyed an average return of almost 50%. In Q2, returns equaled -55%.

According to Michael Spencer, Editor of Future Sin, this as a sign of blockchain projects deteriorating in quality. But, he believes there is more than meets the eye. Other factors are at play. In particular, regulatory pressure from the SEC, ICO bans, and the Bitcoin price slump.

“While ICOs exploded from almost nothing to be a multibillion-dollar market in 2017, however in 2018 they appear even more speculative, risky and dangerous to the layperson investor,” Spencer writes

Less Projects, More Money

But while the failure rate is increasing, investment is not. In fact, the amount of money pouring into ICO tokens is rising. In fact, Business Insider notes that out of a total 827 ICO projects, investment totaled $8.3 billion in Q2 and $3.3 billion in Q1.

At the same time, fewer projects are attracting bigger sums, suggesting that bigger players are entering the market. Spencer also interprets this is a pivot towards private blockchain projects. He explains:

It spells a movement towards bigger players that we are seeing in the larger space; where private instead of public blockchains might be more the order of the day as bigger players enter the space: e.g. Bakkt. Bakkt’s focus on digital assets was wildly acclaimed by crypto insiders and the media as being potentially disruptive.

ICO Investment Dependent on Project Location

As the blockchain market continues its rapid development, investors are adapting as the country of registration is becoming an important factor. In other words, the country in which the company’s legal entity is registered at the time of the ICO.

North American startups attracted the bulk of funding, according to the ICO Rating report, with 64.6% of the total raised in the quarter. But smaller countries are increasingly hosting projects that are attracting larger sums.

The total amount of ICO funding per country presents an interesting picture:

  • Malta: 8 projects raised $113M
  • Cyprus: 8 projects raised $124.7M
  • Isle of Man: 2 projects raised $37M

This is compared to $393.7M and $301M raised in the US and UK, respectively. Put simply, projects within countries that have less red tape and friendlier regulatory frameworks tend to raise more capital per ICO.

In any case, as blockchain technology develops and regulations play catch up, ICOs appear to also be adapting to this borderless new industry.

Is the ICO space experiencing a cool-down? Or is it only getting started? 


Images courtesy of Shutterstock

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Srp 04

‘We Don’t Want to Compete with Coinbase’ – Says Binance CEO

Changpeng “CZ” Zhao, shared some of his big ideas on the future of blockchain and cryptocurrency with Fortune magazine this week. And it’s probably worth listening to the man running the biggest crypto-exchange in the world.


The future is not now, but is decentralised

Binance acquired Trust Wallet this week, and here at Bitcoinist, we focussed on the benefits of adding a mobile wallet to its services. What was perhaps underplayed was that Trust Wallet also acts as a browser for decentralized apps (dApps).

Whilst dApps have currently come to the fore, take-up has been slow, partly due to limited functionality and substandard user-experience. This is something that CZ believes will start to change before too long.

He predicts a move into messaging and social media within the next two years, followed by fully-fledged blockchain-based e-commerce. Let’s not forget that Binance is currently partnering with Malta to create a decentralized banking system.

Specialist blockchains will conquer all

A blockchain like Ethereum is great for hosting dApps, although its throne is constantly under attack from newer, faster rivals. But CZ believes that all blockchains designed for general smart contracts, will ultimately be too slow.

His vision is of a future consisting of many custom ledgers designed for specific purposes. He mentions tools like Komodo and Tendermint, which can create just such custom blockchains.

There is enough in the pot for everyone

Considering Binance’s meteoric rise to prominence, you may expect some form of rivalry between it and previous top crypto-company, Coinbase. But according to CZ, the relationship is more like a mutual love-in.

He says that Binance doesn’t want to compete with Coinbase and Gemini in places like the United States, due to the lawyers and lobbying. It is more than happy working in places like Malta, where it can have a more direct relationship with the administration.

“In developed markets, there’s more money to be made but more regulation and it’s saturated with competition,” he said. “We don’t want to compete with Coinbase and Gemini. The strategy there requires lots of lawyers and lobbying.”

In actual fact, he says that both Binance and Coinbase appreciate the groundwork being down by the other in their various jurisdictions.

Thin on the ground

Of course, predictions aren’t exactly thin on the ground in the cryptocurrency world. And only time will tell what the future will actually bring.

But based on past results (which are not an indicator of future performance), you would have to suggest that CZ has a certain industry insight.

What do you think about CZ’s comments? Share your thoughts below!


Images courtesy of Shutterstock

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Čvc 28

Huge Wind Farm to Power Bitcoin Mining Will Be Built in North Africa

As Bitcoin mining becomes more expensive and is criticized as being detrimental to the environment, several initiatives are being put forward to reverse this situation. The latest move comes from Brookstone Partners, which involves building a 900-megawatt wind farm in Morocco dedicated to mining Bitcoin.


Bitcoin Mining To Minimize Carbon Footprint

Critics have always argued that Bitcoin mining is a threat to the environment. They point out that cryptocurrency mining consumes huge amounts of electricity, often citing the fact that the Bitcoin network consumes more power than the Republic of Ireland.

Bitcoin Mining To Minimize Carbon Footprint

Indeed, Digiconomist estimates that Bitcoin consumes more power than some countries, such as the Czech Republic, Chile, and Austria.

Moreover, Bitcoin energy consumption continues to grow relentlessly. By the end of 2018, the Bitcoin network could be using over 125 terawatt-hours per year, as the chart below forecasts. A terawatt is a unit of power that equals one trillion watts:

2018 Bitcoin Energy Consumption Forecast

However, Bitcoin’s biggest problem is its carbon footprint. According to Digiconomist:

Bitcoin’s biggest problem is not even its massive energy consumption, but that the network is mostly fueled by coal-fired power plants in China. Coal-based electricity is available at very low rates in this country. Even with a conservative emission factor, this results in an extreme carbon footprint for each unique Bitcoin transaction.

Thus, to address the issues of increasing electricity costs and environmental damage and to build computing centers powered by environmentally clean, utility-scale renewable green energy, Brookstone Partners founded Soluna.

Mining Bitcoins Using Clean, Low-Cost Renewable Energy

The planned giant 900-megawatt wind farm to mine Bitcoin will be built in North Africa, Bloomberg reports. The site chosen for the farm is at a remote Moroccan location, in Dakhla, on the edge of the Sahara Desert, by the Atlantic Ocean. According to Soluna’s website:

Soluna aims to address this problem by building computing centers powered by environmentally clean, utility-scale renewable green energy. Our mission is to power the crypto-economy with clean, low-cost renewable energy. To do this, we are building a blockchain infrastructure and mining company that owns its own renewable energy resources.

Brookstone is a private equity firm with its headquarters in New York. It specializes in strategic acquisitions, add-on acquisitions, and growth capital. The firm also focuses on middle market investments in public and private companies.

Bitcoin enthusiasts are encouraged to learn about Brookstone Partners’ initiative, which involves converting wind energy into valuable electrical energy to mine cryptocurrencies. Wind is considered the cheapest energy source available.

How do you think using alternate energy sources such as wind will impact Bitcoin mining? Let us know in the comments below!


Images courtesy of iStockPhoto, Digiconomist, Bloomberg/@business

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Čvc 23

Gary Gensler: From CFTC Chair to Blockchain and Cryptocurrency Educator

Gary Gensler was chairman of the U.S Commodity Futures Trading Commission (CFTC) between 2009 and 2014, right after the global financial crisis. Today, Gensler is part of MIT’s Digital Currency Initiative, lecturing students on blockchain technology and cryptocurrencies.


Gensler was instrumental in dealing with some of the cleanup from the global financial crisis of 2008. He implemented new regulation whilst at the U.S CFTC for the unregulated swaps market which played a central role in the crisis. His work at the U.S CFTC was successful and the new oversights were implemented in advance of other regulators taking actions to mop up after the crisis.

Teaching Blockchain and Cryptocurrency at MIT

After leaving the CFTC Gensler became finance chairman for Hillary Clinton’s 2016 presidential campaign and bid. Gensler has now joined the Massachusetts Institute of Technology (MIT) Sloan School of Management and lectures on blockchain technology and cryptocurrencies.

Bullish on Blockchain

In a recent interview with The Wall Street Journal, Gensler confirmed he is “bullish” when it comes to blockchain, describing it as mimicking the distributed nature of society. However, his past work at the CFTC has left him with a “sober” eye on fast-growing financial technology.

Despite not being directly involved in U.S politics right now he has agreed to help both Republicans and Democrats in matters of cryptocurrency regulation.

Regulators Need to Bring Clarity

Regulators Need to Bring Clarity

Speaking at the MIT Technology Review’s Business of Blockchain conference in April 2018, Gensler said that government officials needed to look to regulate the larger cryptocurrencies as well as new ICO tokens.

“The SEC and regulators need to bring clarity,” said Gensler, many cryptocurrencies “are operating outside of U.S. laws.”

Gensler was quoted in a subsequent debate over Ripple describing it as a “noncompliant security” due to its centralized distribution model.

The CFTC is Better Placed to Regulate the Sector

Last week, July 19, 2018, Gensler spoke at U.S Congressional hearings on cryptocurrencies and blockchain technologies giving five reasons why he believes blockchain technology can make a real difference in the financial sector.

Gensler said blockchain lowers costs and risks and can give stability and prevent illicit activities if regulated. But, the U.S Securities and Exchange Commission (SEC) and U.S CFTC have a role to play as the ICO market is ripe with scams and fraud and there are gaps in U.S law, especially when it comes to exchanges.

Gensler also believes the U.S CFTC is better placed to regulate cryptocurrency markets.

Do you agree with Gensler? Who is better placed to regulate cryptocurrencies in the U.S, the CFTC or the SEC? Let us know what you think in the comments below.


Images courtesy of Shutterstock, Flickr

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Čvc 20

New Zealand Bank Shares Belief in Blockchain

SBS Bank in New Zealand seems to be considering using blockchain technology as a way to provide an improved user experience for their clients.


While some financial institutions are vehemently denying their customers’ interest in cryptocurrencies, New Zealand’s SBS Bank is taking a more pro-active approach.

According to The Southland Times, virtual currencies and blockchain technology were two of the topics discussed at the bank’s recent annual meeting. While the former still has the power to elicit skepticism, the latter is definitely a keen point of interest. The bank’s group chief executive, Shaun Drylie, explained:

We think, and the common consensus is, that it has real merit. Cryptocurrencies, we’re not too sure, and if you look at the volatility of cryptocurrencies that would suggest the market is not too sure as well.

However, this does not mean that there won’t be a possible place for cryptocurrencies in the bank’s future. Drylie added:

We’re keeping a close eye on it, but it’s very hard to pick where it’s going to go long term.

SBS chief executive, Shaun Drylie

Banking for All

Exploring the uses of blockchain technology is part of the institution’s plan to make banking more efficient for its existing clientele and more inclusive for its potential customers. They hope to provide a comprehensive banking experience to those clients who have limited access to their physical branches.

Financial inclusivity is a popular term when discussing the benefits of blockchain. This could be in the form of allowing the unbanked population, or those with restricted access to economic assistance, to easily get credit or apply for a loan.

All of the applicant’s information could be stored and easily accessed via the distributed ledger, making the reams of paper seemingly synonymous with loan applications a thing of the past. With SBS seeing an 11 percent increase in loan approvals, this could be where blockchain could make a difference.

No Stranger to Blockchain

This is not the first bank in the country that has turned to blockchain technology. The Australia and New Zealand Banking Group (ANZ) and IBM have previously collaborated to create a more systematic and efficient solution to insurance reconciliation processes. The financial institution also used blockchain to digitize their previously paper-based bank guarantee process.

However, interest may soon turn more to virtual currencies with the possible introduction of Bitcoin ETFs. Major player Cboe Global Markets has filed an application with The US Securities and Exchange Commission (SEC) for approval thereof. Bitcoin futures trading, which began late last year, has also seen growth since it launched.

Do you think that more banks will turn to blockchain technology to replace their paper-based systems? Let us know in the comments below!


Images courtesy of John Hawkins/Stuff, AdobeStock

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Čvc 18

Blockchain Trade Finance Platform Set to Launch In Hong Kong

A blockchain-backed trade finance platform is getting ready to be launched by the Hong Kong Monetary Authority and partners. The system currently stands as one of the largest examples of a government-backed effort to tackle issues in the worldwide trade finance industry.


Those who work in the trade finance sector often sift through lots of paperwork to verify transactions and ensure credentials are valid. Now, a new blockchain-based platform is being launched in the coming months to help reform the industry by digitizing documents and automating processes so the banking industry can be protected against fraud and risk.

The project is a joint effort by the Hong Kong Monetary Authority (HKMA) and a collection of banks, including HSBC, Bank of East Asia Ltd, and Standard Chartered.

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‘Unlock the trading potential of many thousands’

A growing number of banks, governments, and technology firms have turned their eyes to blockchain when it comes to trade finance — one of the main reasons being that people are still looking for a way to unlock liquidity in the supply chain. A study from Ernst & Young said 2,000 leading companies in Europe and the United States have about $1.3 trillion dollars tied up unnecessarily.

The World Trade Organization said in a report how unmet demand for trade finance totals $700 billion dollars across developing Asia and $120 billion in Africa. The agency says bridging these types of gaps would “unlock the trading potential of many thousands of individuals and small businesses around the world.”

The reasons for the lack of liquidity are multifaceted, but some of the biggest barriers have been identified as high transaction costs, physical paper trails that slow down processes, and general complexity when it comes to accounting.

Government Backing

The blockchain is being heralded as a solution to many of the aforementioned issues — primarily because it could be used to eliminate physical paperwork, vastly cut down on transaction times, and make it easier to catch fraud, since parties can view logged trades in the blockchain.

Banking giant HSBC said in May how it was able to execute the globe’s first commercially viable blockchain trade finance transaction on the Corda platform, which was developed by the R3 blockchain consortium. Entities like Deutsche Bank and Rabobank have also teamed up to launch a trade finance platform.

'Cryptocurrencies Not a Threat' Says Hong Kong Report on Organized Crime

However, the project in Hong Kong is one of the first to go live with government backing. The system was designed by Ping An Group and will be owned by the banks — who are teaming up with the financial regulator.

One key feature of the platform is the ability to cheaply extract company data so potential customers can be reviewed — which is said to make it easier for small businesses to have access to trade and supply-chain finance.

Officials involved with the project also have plans for the future. HKMA deputy chief executive Howard Lee said the next step of the project “is to link up with other trade platforms in other jurisdictions to further facilitate cross-border trades.”

What are your thoughts on the new blockchain trade finance platform? Let us know in the comments below! 


Images courtesy of Shutterstock, Wikipedia Commons.

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Čvc 16

Germany’s Lufthansa Airline to Award Hackers at Unibright Hackathon

One of Europe’s largest airlines, Lufthansa AG will reward blockchain developers participating in an event partnership with Unibright, the “Hackathon without a single line of code” at the Pillar Unconference 2018.


The second #PillarUnconference, also known as the “Woodstock of Crypto,” begins July 15th, 2018, in Vilnius, Lithuania, and is set to attract a wide mix of the cryptocurrency and blockchain community including entrepreneurs and developers. The conference includes workshops, a “devcon” track for blockchain and smart contract developers, and a number of hackathons.

No Coding Needed

Lufthansa, by far the biggest non-crypto brand represented at the conference, has partnered with enterprise blockchain company Unibright to offer awards to the best developers, and indeed non-developers, competing in the “Hackathon without a single line of code.”

Unibright provides template-based, smart contract enabled, blockchain technologies for businesses. Hackathon participants will use Unibright’s “no-coding-needed” templates to work on visual definitions for real life uses case scenarios provided by Lufthansa. The case scenarios participants will need to create blockchain-based solutions for include asset life cycles of planes and equipment, the airline’s and its partner’s loyalty program, voucher management and even seat and flight booking management systems.

Stefan Schmidt, CTO of Unibright, says that blockchain is at an early stage of “mass adoption,” and that:

By adding real use cases from real enterprises we can really show how blockchain can make a change.

Hackathon without a single line of code

Lufthansa Prefer to Make Real Use of Blockchain

In a clear confirmation that Lufthansa is investigating blockchain-based technology for the airline’s future, Lufthansa will reward the best participants with flights from Vilnius, Lithuania to a follow-up blockchain use-case workshop in Frankfurt. The follow-up workshop will involve winning participants, Lufthansa, Unibright, and technology solution provider Zühlke, and be held later in 2018.

Dr. Jörg Liebe, Senior Director Digital Innovations Hub Airlines and Airline Products at Lufthansa, says that blockchain is often a “buzzword” and that Lufthansa “prefers to make real use of it.” He states:

To really benefit from blockchain technology you need use cases where a distributed ledger brings a noteable improvement to existing processes.

Lufthansa, combined with its subsidiaries, was the largest airline in Europe by fleet size and passengers in 2017. Unibright’s Medium announcement confirms Lufthansa is considering blockchain use cases within the corporation.

British Airways first used blockchain technology last year to manage flight data on a number of international flights in a bid to reduce conflicting flight information.

Should more international companies be looking to get in on events like this to develop blockchain strategies and attract key talent?


Images courtesy of Lufthansa AG, Shutterstock

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Čvc 15

Lack of Bitcoin-Based ETFs Challenges Cryptocurrency Investment Markets

With the decision on whether a cryptocurrency-based exchange traded fund (ETF) will ever launch in the U.S still sitting firmly with the Securities and Exchange Commission (SEC), experts continue to speculate on the market and its potential. 


Managed investment funds based on cryptocurrencies may offer a less risky investment route for concerned investors, or a more familiar route for traditional, institutional investors.

Though CBOE and CME Group launched bitcoin-based futures in December 2017, and the SEC has approved seven blockchain-based ETFs so far in 2018, the bitcoin or cryptocurrency-based ETF is still the holy grail of the market. Some believe an outstanding bitcoin-based ETF application could be approved as soon as next month.

Republic of Georgia Emerges as a Global Leader in Cryptocurrency Mining

Difficult to Value

A bitcoin-based ETF would be a major coup for the cryptocurrency space. The SEC is hesitant, however, citing concerns of price volatility and the difficulty in actually setting a market price to base fund payouts upon.

Matthew Hougan, global head of research at Bitwise Asset Management, claims that judging what the right prices are for cryptocurrencies — aside from fund premiums — is difficult, noting:

The crypto ecosystem hasn’t evolved an agreed-upon framework to value crypto.

Hougan believes that cryptocurrencies could become widespread alternatives to money, like gold, putting a floor under prices. “It’s entirely feasible that a new store of value could emerge in the world,” said Hougan, “I don’t think that concept began and ended with gold.”

Hard to Gain Exposure

One existing fund is performing well. The Bitcoin Investment Trust has seen an average trading price 56 percent above the portfolio’s asset value according to Morningstar, but it has little in the way of competition. Its performance could see a sharp decline if bitcoin-based ETFs bring choice to the market.

“The challenge with cryptocurrency-oriented investing is it’s hard to gain exposure, as there are no U.S listed ETF.s,” said Todd Rosenbluth, director of ETF and mutual fund research at CFRA Investment Research. “When the supply to gain exposure to Bitcoin grows via ETF choices and better meets demand, the premium will narrow.”

Crypto Hedge Funds on the Precipice - What Does the Future Hold?

Blockchain Versus Bitcoin

Other experts think that investors are better placed to look towards blockchain technology-based investments. Joe Davis, head of Vanguard’s Investment Strategy Group, is one — stating that he was “enthusiastic” about blockchain but, for bitcoin, there is a “decent probability that its price goes to zero.”

Hougan recommends caution but believes Bitcoin has potential, predicting that adding bitcoin to a 60 percent stock and 40 percent bond portfolio could improve its performance.

Bitcoin-based ETFs could be one of a number of market signals institutional investors are waiting for to truly enter the cryptocurrency market and fuel its next boom. 

Do you think the launch of Bitcoin-based ETFs will make a difference to Bitcoin’s price? Are blockchain-based ETFs better? Let us know your thoughts in the comments below! 


Images courtesy of Shutterstock, Bitcoinist archives.

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