Monthly Archives: August 2017

The Bitcoin Price Just Inched Up to Set Another All-Time High

Aug 11, 2017 at 14:00 | Pete Rizzo

The price of bitcoin reached its highest level ever on the CoinDesk Bitcoin Price Index today, climbing above $3,550 amid a period of strong gains.

Aug 11, 2017 at 12:37 | Pete Rizzo

The total value of all cryptocurrencies has set a new all-time high, just four days after it set its previous record for market capitalization.

Aug 10, 2017 at 19:30 | Wolfie Zhao

Tokyo-based cryptocurrency exchange Coincheck is launching a new investment fund.

Aug 10, 2017 at 12:00 | Ash Bennington

A new fund launched by a prominent trader aims to offer U.S. investors broad exposure to the fast developing cryptocurrency asset class.

Aug 9, 2017 at 23:05 | Stan Higgins

Analysts at Goldman Sachs are advising clients to stay abreast of developments in the cryptocurrency sector even if they don't plan on investing.

Aug 9, 2017 at 21:05 | Ash Bennington

How is bitcoin's recent fork affecting price forecasts? According to bitcoin traders, the weather ahead looks unexpectedly sunny.

Aug 9, 2017 at 20:00 | Wolfie Zhao

European cryptocurrency exchange Bitstamp will launch new trading pairs for ether next week.

Aug 9, 2017 at 14:30 | Pete Rizzo

Litecoin continues to hover near all-time highs a move that suggests it could be developing staying power in a diversified crypto market.

Aug 9, 2017 at 13:00 | Stan Higgins

Bitcoin exchange BTC-e has said it will return under a new name and issue a token to refund users after it was closed by U.S. authorities.

Aug 9, 2017 at 05:00 | Ash Bennington

Fidelity Labs is partnering with Coinbase to enable its customers to track their bitcoin holdings alongside traditional investments.

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Bitcoin Price Index - Real-time Bitcoin Price Charts

Bitcoin's gains followed an uneventful split last week into bitcoin and bitcoin cash, an upgrade proposal supported by a minority of developers. This week, an overwhelming majority of developers signaled their support for a more popular upgrade called Segregated Witness, or SegWit.

"With SegWit locked in, and an effective split between two camps with differing visions for the asset (BTC and BCH), it is now experiencing a relief rally," said Chris Burniske, author of the upcoming book, "Cryptoassets: The Innovative Investor's Guide to Bitcoin and Beyond."

"A greater number of entities, including institutions, are waking up to bitcoin's merits as a currency that is uncorrelated to the traditional capital markets," he said.

Many digital currency enthusiasts believe bitcoin will one day become "digital gold" amid the rise of other cryptocurrencies. The supply of bitcoin is limited to 21 million, but demand for the digital currency remains high as it's typically the way for new investors to participate in the growing, larger world of cryptocurrencies.

Bitcoin already trades at nearly three times the price of gold.

Some Wall Street analysts have also published research in the last several weeks noting how bitcoin could rise several thousand dollars if even a small percentage of holdings in gold, stocks and bonds flowed into the digital currency.

U.S. stocks remain close to their all-time highs, and many strategists expect a deeper pullback soon due to seasonal factors and overextended prices. The S&P 500 closed below its 50-day moving average Thursday for the first time since July 6, led by declines in technology stocks.

Stocks were slightly higher Friday, but the Technology Select Sector SPDR ETF (XLK) remained 0.8 percent lower for the week, tracking for its worst week since the end of June. The S&P 500 was on pace for a decline of about 1.3 percent for the week, its worst in at least four months.

That said, there's no guarantee the digital currency can keep climbing even if it's survived this summer's controversy over the best way to upgrade the bitcoin network. The second phase of Segregated Witness is set to take place in November and could result in yet another split in the digital currency.

"Every day sees new buyers entering the market, and as the price rises, owners of Bitcoin only become more bullish," Ari Paul, CIO of cryptocurrency investment firm BlockTower Capital, told CNBC in an email. "This trend may continue until there's an exogenous shock to entice new sellers."

Another digital currency, ethereum, was little changed around $300 Friday, according to CoinDesk.

The bitcoin offshoot, bitcoin cash, traded 13 percent higher near $330, according to CoinMarketCap.

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Bitcoin surges to fresh record above $3500, beats gold amid the global market sell-off - CNBC

The average price of bitcoin across global exchanges today reached $3,550 on the CoinDesk Bitcoin Price Index, setting yet another new all-time high.

The uptick coincides with a palpable improvement in public sentiment about the world's first cryptographic asset, with bitcoin recently receiving positive mentions from leading asset managers and gaining increasing exposure in western media.

At press time, bitcoin was trading at $3,550, a figure that has appreciated nearly 50% over the last month of trading. Data from the CoinDesk BPI indicates the price of bitcoin was just $2,423 on June 12.

Yet, the strongest growth has been seen in the last week,following a fork of the bitcoin blockchain that resulted in the creation of a new cryptocurrency, bitcoin cash.

Perhaps most notably, bitcoin is up nearly 25% on the week since the split, rising from $2,871 seven days prior, while bitcoin cash, the new blockchain, has climbed just 17%, rising to $340 from $290 one week ago.

The interplay between the two currencies will no doubt be one to watch, as it could change attitudes toward blockchain forks and provide an illustration of how cryptocurrency markets will respond to technical changes in the future.

Bitcoin image via Shutterstock

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at [emailprotected].

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The Bitcoin Price Just Inched Up to Set Another All-Time High - CoinDesk

If youve been hearing or reading a lot about blockchain but you still arent entirely certain how to define it, youre not alone. Its something that Jack Dorsey, the chief executive officer and chairman of Square (and CEO of Twitter), describes as the next big unlock, something that, he notes, is normally applied to accounting terms but has the potential to be applied to so much more.

In an interview earlier this week at the Computer History Museum in Mountain View, California, I had the chance to ask Dorsey about Squares business, the future of banking, cryptocurrencies, blockchain, and more.

Blockchain is often defined as a ledger that enables secure, encrypted transactions. Some financial and technical experts have described it as analogous to the early days of the internet: its a framework or backbone for transactions, while the various use cases for it are analogous to apps on the internet as we know them today.

But Dorsey also went beyond that interpretation of it, adding that the ability to distribute and decentralize the ledger enables proof of work, and proof of one entity, in an untrusted network. Even if theres a hostile entity or a mistrust in the network, Dorsey said, we can still account for value creation and the transfer of values as well.

There are so many problems we can help solve [with blockchain] that are not just related to finance, but finance is an obvious one, he added.

There are so many problems we can help solve that are not just related to finance.

However, the availability of blockchain technology doesnt necessarily mean that everyone should jump on the blockchain bandwagon. I think there are going to be a bunch of people who say, Blockchain, lets go apply it everywhere and Lets try to solve every single problem with it, Dorsey said, in the same way that we try to solve every problem with machine learning and data science and deep learning and artificial intelligence. And I think we need to be more thoughtful. What are people struggling with? How does the technology help them progress or does it distract them?

Dorsey also spoke about bitcoin, which Square has accepted as a form of payment since the fall of 2014. Dorsey also admitted he has personally invested in Bitcoin, though he didnt share how many bitcoins he holds.

He said one of the most surprising things hes experienced recently is when friends and family, who arent as close to the technology industry, have been asking about bitcoin specifically, how to invest in the cryptocurrency.

Im from St. Louis, Missouri, and I have a lot of friends and family who are not into technology, Dorsey said. Over the holidays, one of the things I kept getting asked by people I know is, You work in technology, you work in finance, how do I buy bitcoin? I asked, Why do you want to buy bitcoin? And they said, Well I heard its a fast easy way to make money... someone said its like digital gold.

Dorsey went on to discuss the benefits of and potential problems with investing in a digital asset that is decentralized, deflationary, and in general, unlike any other traditional stock market securities. The full video is below. Its a long discussion, but its a rare in-depth conversation with an entrepreneur who has firmly established himself as a disruptor in more than one industry.

Watch Square CEO Jack Dorsey in Conversation with The Verges Senior Technology Editor Lauren Goode. Hes talking about why he started the digital payments company, his approach to innovation in financial services and his vision for the future of commerce. Please submit your questions during the live program in the comments below. #CHMLive

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Square founder Jack Dorsey talks bitcoin and says blockchain is the 'next big unlock' - The Verge

Bitcoin will likely outperform stocks and bonds the rest of the year, according to the first major Wall Street strategist to issue a report on the digital currency.

"I think bitcoin is an underowned asset with potential for huge institutional sponsorship coming," Fundstrat co-founder Tom Lee said Wednesday on CNBC's "Fast Money."

"It has a lot of characteristics that are very similar to gold that I think will make it ultimately attractive as an alternate currency," he said. "It's a good store of value."

Here's Lee's outlook on bitcoin given on the show into year-end:

Gold or bitcoin? Bitcoin?

"Yes."

Would you rather own bitcoin versus a basket of U.S. stocks?

"Between now and year end it's easily bitcoin."

Will bitcoin be the best performing asset?

"Yes."

Bitcoin leaped to record highs this week above $3,500, more than tripling in value for the year despite a split in the currency last week into bitcoin and bitcoin cash, an alternative version supported by a minority of developers.

Bitcoin traded 1.5 percent higher near $3,428 Thursday morning, according to CoinDesk. Bitcoin cash steadied after wild swings in its first week, trading near $303, according to CoinMarketCap.

Another digital currency, ethereum, rose 1 percent to just under $300, according to CoinDesk.

Bitcoin three-month performance

Source: CoinDesk

Lee published a report in early July outlining the potential for bitcoin to rise above $20,000 and potentially reach $55,000 by 2022. Formerly the top stock strategist at JPMorgan and a perennial favorite of big institutional investors, Lee was also one of the few on Wall Street to predict that a Donald Trump win in last year's election would cause stocks to rally, not fall like most had seen.

Lee sees another reason for optimism about bitcoin.

"Institutions have to directly buy the coin today through a broker, but both the CBOE and the CFTC have opened up options futures trading, so I think it's going to grow in holdings," he told CNBC.

In the last month, the Chicago Board Options Exchange said it plans to offer bitcoin futures by early next year, while the U.S. Commodity Futures Trading Commission approved a digital currency trading firm called LedgerX to clear derivatives.

Market strategists have noted there are few highly attractive investment opportunities with U.S. stocks at all-time highs and bonds steady as the Federal Reserve remains on a gradual pace of monetary policy tightening and gold in a trading range.

The median S&P 500 target of strategists surveyed by CNBC is 2,475, just a point above where the stock index closed Wednesday. Lee happens to be the most bearish among those strategists with a year-end target of 2,275, or 8 percent below Wednesday's close.

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Top Wall Street strategist expects bitcoin to be the best asset through year-end - CNBC

Russia is planning to expand its bitcoin-mining industry to rival China as the world's largest mining market, according to Bloomberg reports.

Bitcoin consultants warn that if Russia looks at regulating Bitcoin, this could potentially affect the price and widespread support for Bitcoin within the investing community. It is also important to note that Russia does not see Bitcoin as a currency but as a digital asset.

Another huge announcement involves Bitcoin company Russian Miner Coin (RMC), which is hoping to is raise $100 million in an initial coin offering (ICO) and in turn promising buyers a right to 18% of the company's mining revenue.

Michael Parsons, a bitcoin entrepreneur at the UK Digital Currency Association, explains the Russian authorities have been trying over the years to ban bitcoin. But this view softened over the last year or so, hence movements from RMC and others. That's, in part, a result of a shift in how Bitcoin is viewed.

"Earlier this year, Elvira Nabiullina, governor of the Russian Central Bank, explained that she views bitcoin as a digital asset rather than a virtual currency, and this is how Bitcoin should be thought about with regards to future regulation," Parsons said.

It is expected Russia will rival China -- but how exactly will Russian Bitcoin mining impact the space?

"By moving into Bitcoin mining, Russia would support the mining decentralization of Bitcoin, providing an additional significant Bitcoin mining participation to balance the mining by other large groups and mining pools especially the large bitcoin mining farms concentrated in China," Parsons said.

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"Then, by accumulating bitcoin through its own mining, Russia may also consider bitcoin to be recognized as a potential reserve digital currency," he added. "And, if Russia looked at regulating bitcoin, this could potentially affect the price and support for bitcoin."

Currencies have a geopolitical impact.

"As cryptocurrencies create a new asset class that does not depend on any government, it makes sense for governments to try to enter that space," said a Bitcoin expertwho requested anonymity. "Currency and payment systems have a geopolitical impact. For instance, at end of 2014 Visa and Mastercard suspended operations in Crimea following U.S. sanctions."

The source explained that BCash can be seen as a Chinese version of Bitcoin, and RMC a Russian version of Bitcoin.

The Bank of England has also studied a national blockchain. Promoting local champions is also a good strategy to develop skills and competencies that may become critical in the future.

"Governments can also invest into large industry players through venture capital funds and influence the industry through regulation," the source added. "The European Union fourth AML directive defines new rules for crypto currency custodians."

In the beginning, RMC is expected to rely on Bitfury chips. Bitfury is a company that manufactures mining equipment and also operates its own mining operations, was founded by Valery Vavilov, a Russian-speaking native of Latvia.

"In the case of RMC, the partnership with Bitfury, a large and well established Bitcoin miner operating in 18 countries, is significant," the source said. "RMC will be able to get to market much faster by using BitFury data centers and technology, while developing its own homemade mining equipment. It is not clear why Bitfury is selling these profitable Bitcoin mining assets."

For those looking to keep track of Bitcoin's price trajectory, Russia will inevitably be an essential piece of the puzzle.

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Russia Is Secretly Plotting to Expand Bitcoin Mining Industry to Take on China - TheStreet.com

Bitcoin has gotten a lot of fanfare lately, but not from Howard Marks, a legendary value investor on Wall Street.

Marks told CNBC's "Halftime Report" on Thursday that's because he doesn't understand what is the actual value of bitcoin.

"It's not a medium of exchange, it's a medium of trading, so I can't see any intrinsic value," Marks said. "I don't understand what's behind bitcoin."

"For me, there is only one kind of investing: When you look at something, you don't think, 'Is it going up or down tomorrow?' ... You say, 'What is the intrinsic value?' and then you say, 'Can I buy it for less?'" Marks added. "There is no intrinsic value in bitcoin."

Bitcoin has surged nearly 250 percent this year alone, prompting many to hop on the cryptocurrency's bandwagon.

Bitcoin in 2017

Source: Coindesk.com.

Fundstrat co-founder Tom Lee told CNBC's "Fast Money" on Wednesday he thinks the cryptocurrency will be the best-performing asset class through year-end. Investing legend Bill Miller reportedly owns bitcoin, and Josh Brown, CEO of Ritholtz Wealth Management, said last month he used Coinbase to buy bitcoin.

"Maybe I'm just too old and too much of a dinosaur to understand bitcoin," Marks said jokingly.

The co-chairman of Oaktree Capital is widely known for his investment memos, which predicted the financial crisis and the dot-com bubble implosion.

In a memo last month Marks compared cryptocurrencies with the Tulip mania of 1637, the South Sea bubble of 1720 and the internet bubble of 1999.

With reporting by Tae Kim.

Disclosure: Josh Brown is a CNBC contributor.

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Howard Marks, who has called past market bubbles, says 'I don't understand what's behind bitcoin' - CNBC

Bitcoin has gone on bull runs before but nothing like this: Prices this week shot through the $3,500 mark as the mainstream media hailed digital currency as a new asset class. Then it got another boost as the blue chip brokerage house, Fidelity, allowed its customers to create bitcoin accounts.

Now, some people are calling for it go even higher. As Quartz reports , a Standpoint Research analyst has called a target of $5000 for bitcoin by 2018. This raises the question of whether ordinary investors should put a smidgen of their savings, or even their retirement accounts, into buying bitcoin. (Keep in mind you don't have to buy a whole bitcoin. Since it's digital, you can buy a hundred millionth of onethis tiny unit is called a Satoshi after bitcoin's creator.)

There are strong arguments to buyand also strong ones to stay the heck away. Here are three of each.

Major investors and the financial industry is taking it seriously

Since its creation in 2008, Bitcoin's biggest boosters have been computer geeks and libertarians. But recently, they've been joined by a growing number of mainstream investors and entrepreneurs who see bitcoinand other digital currenciesas a legitimate asset class such as stocks, bonds, or commodities.

In 2017 alone, famous names like Andreessen Horowitz and Sequoia Capital have bet on hedge funds that are investing hundreds of millions of dollars into digital currency funds. Meanwhile, the financial infrastructure to support bitcoin and other digital currency is maturing rapidly: Coinbase's GDAX exchange has supported margin trading since March, while the Commodity Future Trading Commission just gave the green light for firms to sell digital currency options and other derivatives.

There is only a limited amount of bitcoin

One reason to buy bitcoins are a valuable asset is that only 21 million of them will ever come into the worldand most of them are already here. As those familiar with bitcoin know, the number of coins created by the mining process drops by half every few years. Right now, around 80% of all bitcoins are already mined and no new ones will appear after the year 2040. This scarcity could continue to drive up demand, especially if (as has been rumored ), central banks decide to start buying them as foreign currency reserves.

Some see bitcoin as the new gold

So-called gold bugs like to own the precious metal because it is an asset whose value is not controlled by governments. Even if a country is ravaged by war or its profligate central bank prints too much money, the value of gold (unlike the national currency) will remain. Bitcoin has many of the same qualities. It exists on a decentralized computer network that transcends national borders, and there is no Federal Reserve-like authority that can devalue it.

This isn't a definitive reason to buy bitcoin any more than it is to buy gold. But an analyst cited by Quartz predicts the gold bugs will become bitcoin bugs instead, which means a lot of money flowing into the digital currency.

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Bitcoin's core users are still criminals and fringe figures

For years, stores like Overstock and Subway have accepted bitcoin as payment alongside cash and credit cards. But despite the promise of true believers that bitcoin could replace cash one day, there is no evidence this will happen. The reality is bitcoin is too slow compared to visa or debit cards, and transaction fees are rising. Right now, you can pay a fee and wait ten minutes for your bitcoin transaction to clearor swipe a credit card to pay instantly and get a cash reward.

Because of these limitations, bitcoin's core use remains what's it's always been: paying for drugs or extortion fees on the Internet. For instance, the cyber-criminals who launched a recent wave of " ransomware " attacks known as WannaCry asked for payment in bitcoin .

Ordinary consumers, meanwhile, are not using it as a payment method. That doesn't mean its not valuable as an investmentjust that, in the real world, it's even less useful than gold.

Bitcoin is extremely volatile

Over its nearly decade-long history, bitcoin has been prone to spectacular crashes. In 2013, for instance, the currency went on a run to over $1,100 only to tank to $700 a few months later, and then bottom out near $200 in early 2015. There is no reason this couldn't happen again.

While investors may drool at $5,000 bitcoin, they better be equally ready to kick themselves if it tumbles back to $2,000 or lower this year. This goes double for the many other so-called alt-currencies (other digital currencies some people buy as a proxy investment for bitcoin.)

Bitcoin only exists on computers

This may sound obvious but, as a form of money, bitcoin might be the most intangible stuff in history. Even paper money or securities can be presented to a central bank or company in the hopes someone will redeem them. No such possibility with bitcoin. Digital currency is just a piece of code out there on the Internet (or in special digital storage vaults to prevent hackers from stealing it), and there is no country or company you can ask to honor it.

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$5000 Bitcoin? 3 Reasons to Buyand to Stay Away - Fortune