Goldman Sachs pulls back on bitcoin trade plans: report
Bitcoin Market Weekly Report - Week of 08/06/2020
https://preview.redd.it/tj3ok1kpil351.png?width=698&format=png&auto=webp&s=a0cf148f5ce51959374061c4bfa13baf6e1e491f Review of the week: Last week, a presentation from the wealth management division of Goldman Sachs noted that cryptocurrencies including Bitcoin are not an asset class. During a discussion about Bitcoin, gold, and inflation, the Goldman Sachs wealth management division said Bitcoin is not a “suitable investment for our clients.” But the ostensibly pessimistic stance of Goldman Sachs towards Bitcoin does not entirely reflect the bank’s perception of cryptocurrencies. According to Ethan Vera, former investment banker at Goldman Sachs and current executive at a crypto mining firm, the perception of Bitcoin by one division does not necessarily mirrors the bank’s viewpoint. He mentioned that the principal strategic investments group is “completely separate” from the wealth management division that gave the presentation and added: “I really do think Goldman is further ahead than most of the other Banks on Bitcoin.” A latest report from Bloomberg reveals that all signs point to Bitcoin going on the major bull run in 2020, the only question is whether it will break the all-time high of $20,000. COVID-19 has accelerated Bitcoin’s maturation as an asset, showing its strength amid declining equities. In addition, it points to the ever-increasing appetite from institutional investors, and Grayscale, or GBTC, in particular, which has been consuming about 25% of the new supply and a surged raise from $ 2billion to $3.5 billion on June 3. Also, Grayscale’s director of investor relations, Ray Sharif-Askary, revealed that $110 million worth of ETH has been purchased by the firm during 2020 so far in Grayscale Ethereum Trust. He attributed Grayscale’s enormous crypto accumulation to institutions seeking a hedge fledge against inflation in response to U.S. monetary policy amid the COVID-19 crisis. Disclaimer: The above market commentary is based on technical analysis using historical pricing data, and is for reference only. It does not serve as investment or trading advice. About Coinviva: Coinviva aims to create the best crypto financial services ecosystem for both institutional and individual investors. We provide reliable fiat funding options, excellent trading liquidity, bank security level custody and one-stop high liquidity provision on-site & off-site. Our founding management team all come from top tiered investment banking (e.g. JP Morgan, Morgan Stanley, Bank of America Merrill Lynch), with fully comprehensive financial institution operation experience. Homepage: https://coinviva.com/ Telegram: https://t.me/coinviva
Emerging uncorrelated asset class: crypto December 2019
The Rise of Crypto
To date, the entire crypto asset class has experienced over $185 billion market cap growth in the last 10 years, with an ATH of $815 billion in 2018. (1) If you had invested $100 ten years ago in Bitcoin, you’d have a 9,150,088% return with $9.2M today.(2) In the last ten years, out of the world’s largest top 10 companies, Bitcoin has drastically outperformed them all and to date has the lowest market cap. https://preview.redd.it/25dqp7ave8441.jpg?width=1603&format=pjpg&auto=webp&s=c41d15a952c5e4096ec084bd740034e417becf64 https://preview.redd.it/9n7h8aaxe8441.png?width=454&format=png&auto=webp&s=743de112b7995b1d30d42fc1c9d4b8b04195b689 Bitcoin is the leading crypto in terms of market cap and despite its +45% drawdown since late June, it still boasts one of the best 2019 returns of any asset globally. Whether you look at the past 10 years, 5 years or 3 years crypto as an asset class has generated the highest return of all major asset classes globally. The crypto asset class market capitalization is a fraction of what other investment categories market caps are today. There is much room for growth while adoption occurs over the next decade. A World Economic Forum survey suggested that 10 percent of global GDP will be stored on blockchain by 2027. (3) Nigel Green, founder and CEO of financial advisory firm deVere Group, with $10 billion under advice, believes “the value of the broader crypto market is poised to expand by 5,000%, which would attach a combined market cap of $20 trillion in the coming decade.” (4) Crypto vs traditional asset class returns & market caps
Beer, Blockchain and Derivatives Trades: A Hackathon Brings Bankers and Techies Together to Disrupt a Trillion-Dollar Market
The beer was flowing and the hubbub of conversation was beginning to rise at Barclays’ fintech hub in London’s trendy Shoreditch neighborhood last week. After a marathon competition, developers finally let their hair down. For the previous 48 hours, the participants of DerivHack had been testing new digital tools. There was more than just pride on the line. The new technologies promise to cut billions from the cost of processing trades in the multi-trillion-dollar derivatives and securities markets. For two days, in long sessions fueled by coffee and Coca-Cola, international teams of developers in London, New York and Singapore tested a new trading standard developed by the industry group, International Swaps and Derivatives Association (ISDA) that could transform the way the derivatives industry and other financial markets work. Banks and developers say the new trading standard, coupled with distributed ledger technology, could bring big savings to the expensive business of processing trades. A distributed ledger is a secure, decentralized database shared among different parties. Think of it as a bookkeeping method that instantly verifies that you’re getting precisely what you’ve agreed to. The best-known ledger technology is blockchain, which underpins the cryptocurrency bitcoin. In recent years, there’s been considerable hype around deploying distributed ledger technology in the banking sector to speed up all manner of transactions that now take days to clear. The derivatives market is particularly ripe for disruption. Despite is size, it’s riddled with inefficiency. Participants have established myriad ways to process trades over the years, leading to redundant layers of processing and compounding reconciliation costs, which occur when the data shared between the buyer and seller doesn’t perfectly match up.
A billion dollar fix
The ISDA’s fix to this problem is called Common Domain Model (CDM), a distributed ledger technology that it’s rolled out in stages over the past year that promises to automate the processing of derivatives trades. Deloitte reckons a blockchain-derived tool such as this could cut dealers’ costs of roughly $3.2 billion by 80-85%. “The total opportunity becomes much larger when considering the inclusion of other market participants outside the dealer community, benefits to regulators, improvements in funding, and balance sheet optimization,” Deloitte said in a recent report. But if CDM is ever to become a trusted trading standard, the geeks first have to put it through its paces. That’s why Barclays sponsored the hackathon, now in its second year. To get away from the suits in the Square Mile, it held the event where the coders and engineers could be found during the day—its Rise building in Shoreditch, which houses dozens of finch start-ups.
Making sense of credit default swaps
The market value of over-the-counter derivatives has fallen since the financial crisis of 2007-09. That’s when one type of derivative, credit default swaps, dominated before the market imploded under the weight of a cascade of defaults. But the gross market value of OTC derivatives still stood at a staggering $9.7 trillion at the end of 2018, down from a peak of $35 trillion in 2008, according to the Bank for International Settlements. The Common Domain Model was developed by ISDA in an effort to harmonize a patchwork of different conventions used to represent derivatives trades and processes, and bring them in line with the latest regulation. Another plus: it can automate error-prone manual processes. At its “derivatives hackathon”, Barclays gave teams of IT developers trading scenarios that required them to use ISDA’s CDM standard; the teams chose the technology platform—whether a centralized database or a distributed ledger platform. The scenarios allowed the teams to model post-trade processing of derivatives contracts to show how efficiencies could be achieved by using the CDM standard. Barclays hosted a similar event last year in New York and London. This year, DerivHack was extended to Singapore and the product scope broadened to include securities. Fifteen teams took part in London, 19 in New York and 8 in Singapore, including a team from Russia. In addition to Barclays, participating banks included JP Morgan, Goldman Sachs, HSBC, UBS, Bank of America and NatWest. Ian Sloyan, ISDA’s director for market infrastructure and technology, said ISDA was seeing a lot of interest in the new standard. “We are seeing some real-life projects now talking about implementing the ISDA CDM, which is happening at pace. In the next year, I think we are going to see some big implementation projects that will demonstrate how important the ISDA CDM is going to be to the market,” he told Fortune. Lee Braine, Barclays’ director of research and engineering, said that, a year ago, the purpose of the hackathon was to get a sense from the industry of whether the CDM made sense, and was usable. “We’re past that. The answer was yes. So now the challenge is: how do you drive adoption?” he said, adding the interest is strong from banks and fintechs alike. Sunil Challa, director, Business Architect, Barclays Strategy, said one big development since last year was that ISDA had made CDM open source, meaning any developer could work with the model, regardless of whether they were experts in financial services. “Within the blockchain/distributed ledger technology platforms, three out of the four major platforms have essentially taken this standard and mapped it, and extended it on their platforms,” he said. The winner of the London leg of DerivHack was Finteum, a startup that is building a platform for banks to borrow and lend to each other for hours at a time instead of overnight. Co-founder Brian Nolan found it relatively easy for Finteum, as a new trading platform, to integrate CDM into its platform. He said CDM showed promise as a standard. “Absolutely, not just derivatives, but here as you’ve seen in the securities industry, I think there is growing momentum behind it. I think today’s event proves that,” he told Fortune.
A Chairman at World Economic Forumhttps://www.weforum.org/people/glenn-h-hutchins/https://archive.is/kubAYGlenn Hutchins is chairman of North Island and a co-founder of Silver Lake, the global leader in technology investing. He is a director of both AT&T and NASDAQ OMX; a director of the Federal Reserve Bank of New York; vice chairman of both the Brookings Institution and the Economic Club of New York; and a member of the Executive Committee of the New York Presbyterian Hospital. He is an owner and member of the Executive Committee of the Boston Celtics basketball team. Mr. Hutchins is a director of the Harvard Management Company, which is responsible for the Harvard University endowment, and co-chairman of the University’s capital campaign. He is also a board member of the Center for American Progress as well as a Fellow of the American Academy of Arts and Sciences. Previously, Mr. Hutchins served President Clinton in both the transition and the White House as a special advisor on economic and health-care policy. He was also previously chairman of the board of SunGard Data Systems, Inc. and Instinet, Inc. Mr. Hutchins and his wife, Debbie, founded the Hutchins Family Foundation which, among other projects, has created the Hutchins Center for African and African-American Research at Harvard University, which is chaired by Mr. Hutchins; the Hutchins Center on Fiscal and Monetary Policy at The Brookings Institution; and the Chronic Fatigue Initiative, which conducts basic research into the cause of chronic fatigue syndrome.
Advisory Board Larry Summers
Born in New Haven, Connecticut, Summers became a professor of economics at Harvard University in 1983. He left Harvard in 1991, working as the Chief Economist at the World Bank from 1991 to 1993. In 1993, Summers was appointed Undersecretary for International Affairs of the United States Department of the Treasury under the Clinton Administration. In 1995, he was promoted to Deputy Secretary of the Treasury under his long-time political mentor Robert Rubin. In 1999, he succeeded Rubin as Secretary of the Treasury. While working for the Clinton administration Summers played a leading role in the American response to the 1994 economic crisis in Mexico, the 1997 Asian financial crisis, and the Russian financial crisis. He was also influential in the American advised privatization of the economies of the post-Soviet states, and in the deregulation of the U.S financial system, including the repeal of the Glass-Steagall Act.
Following the end of Clinton's term, Summers served as the 27th President of Harvard University from 2001 to 2006. Summers resigned as Harvard's president in the wake of a no-confidence vote by Harvard faculty, which resulted in large part from Summers's conflict with Cornel West, financial conflict of interest questions regarding his relationship with Andrei Shleifer, and a 2005 speech in which he suggested that the under-representation of women in science and engineering could be due to a "different availability of aptitude at the high end," and less to patterns of discrimination and socialization.
After his departure from Harvard, Summers worked as a managing partner at the hedge fund D. E. Shaw & Co., and as a freelance speaker at other financial institutions, including Goldman Sachs, JPMorgan Chase, Citigroup, Merrill Lynch and Lehman Brothers. Summers rejoined public service during the Obama administration, serving as the Director of the White House United States National Economic Council for President Barack Obama from January 2009 until November 2010, where he emerged as a key economic decision-maker in the Obama administration's response to the Great Recession. After his departure from the NEC in December 2010, Summers has worked in the private sector and as a columnist in major newspapers. In mid-2013, his name was widely floated as the potential successor to Ben Bernanke as the Chairman of the Federal Reserve, though after pushback from the left, Obama eventually nominated Federal Reserve Vice-Chairwoman Janet Yellen for the position.
DCG of course is an investor in both Blockstream and BTCC. DCG's money comes from:
Bain Capital Group
New York Life
Novel TMT Ventures
Solon Mack Capital
The Whittemore Collection
HCM International Co
DCG also owns Coindesk. BTCC and Bitfury are the only two large mining pools who are outspoken in their support of Bitcoin Core. The Bitfury Group Leadership to Present at Clinton Global Initiative (https://archive.is/MWKee) Full Video (Begins at 32:00) “The Bitfury Group is proud to be the world’s leading full service Blockchain technology company, we are deeply honored to represent this innovation to an audience of extremely dedicated game-changers, and we look forward to highlighting our company’s groundbreaking ‘Blockchain for global good’ work at such an important event, said Smith. “From the White House to the Blockchain, I know this technology has the power to deliver inclusion and opportunity to millions, if not billions, of people around the world and I am so grateful to work for a company focused on such a principled vision.” Bitfury Lightning Implementation
ACINQ’s US Headquarters is in Vienna, Virginia, a small town of only 16,000. Why would a global financial firm choose to locate here? -- Feeder community into Washington, D.C. Has an orange line metro stop. -- Located in Fairfax County, VA. -- The US Federal Government is the #2 largest employer -- Booz Allen Hamilton (NSA front company) is #6 largest employer -- In fact, most of the top employers in Fairfax County are either US Federal Gov’t or companies that provide services to Federal Government -- The county is home to the headquarters of intelligence agencies such as the Central Intelligence Agency, National Geospatial-Intelligence Agency, and National Reconnaissance Office, as well as the National Counterterrorism Center and Office of the Director of National Intelligence.
Chairman: Avinash Vashistha
Former Chairman and CEO of Accenture in India
He has worked with numerous clients in Banking, Investment and Financial services - General Atlantic, Goldman Sachs, Warbug Pincus, JP Morgan Chase, Visa, Citi Ventures, Baird Capital, Norges Bank, UBS, AXA and has advised World Bank, IDB, ADB, USAID and other multi-lateral agencies over the last 20 years on country strategy and investments across Asia and Latin America.
From 1986-1993 he worked for Information Management Consultants (imc) Ltd as a Technical Consultant with various federal government agencies. McLean, Virginia
1993-2000 Technical Consultant for Freddie Mac, in McLean Virginia
From 2000-2007, President of InterPro Global in Maryland
From 2011-2012, Director of VibbleTV in Columbia, Maryland
From 2008-Present has been Executive Director at ACINQ and Managing Partner at Vine Management, both in Vienna, Virginia.
BitFury Enhances Its Advisory Board by Adding Former CFTC Chairman Dr. James Newsome and Renowned Global Thought Leader and President of the Institute for Liberty and Democracy Hernando de Soto (Businesswire) Bitfury Board of Directors Robert R Dykes
Former CFO at Juniper Networks from 2005-2007, which had an NSA backdoor added to router software.
Greg Maxwell spent “several years at Mozilla”, leaving in August 2014
The other board members include two Bitfury founders, and an investor. Bitfury Advisory Board James Newsome
Ex-chairman of CFTC
Dr. Newsome was nominated by President Clinton and confirmed by the Senate to be at first a Commissioner and later a Chairman of CFTC. As Chairman, Newsome guided the regulation of the nation’s futures markets. Additionally, Newsome led the CFTC’s regulatory implementation of the Commodity Futures Modernization Act of 2000 (CFMA). He also served as one of four members of the President’s Working Group for Financial Markets, along with the Secretary of the Treasury and the Chairmen of the Federal Reserve and the SEC. In 2004, Newsome assumed the role of President and Chief Executive Officer of the New York Mercantile Exchange (NYMEX) where he managed daily operations of the largest physical derivatives exchange in the world. Dr. Newsome is presently a founding partner of Delta Strategy Group, a full-service government affairs firm based in Washington, DC.
Hernando de Soto
Hernando de Soto heads the Institute for Liberty and Democracy, named by The Economist one of the two most important think tanks in the world. In the last 30 years, he and his colleagues at the ILD have been involved in designing and implementing legal reform programs to empower the poor in Africa, Asia, Latin America, the Middle East, and former Soviet nations by granting them access to the same property and business rights that the majority of people in developed countries have through the institutions and tools needed to exercise those rights and freedoms. Mr. de Soto also co-chaired with former US Secretary of State Madeleine Albright the Commission on Legal Empowerment of the Poor, and currently serves as honorary co-chair on various boards and organizations, including the World Justice Project. He is the author of “The Other Path: the Economic Answer to Terrorism”, and his seminal work “The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else.”
Criticisms: -- In his 'Planet of Slums' Mike Davis argues that de Soto, who Davis calls 'the global guru of neo-liberal populism', is essentially promoting what the statist left in South America and India has always promoted—individual land titling. Davis argues that titling is the incorporation into the formal economy of cities, which benefits more wealthy squatters but is disastrous for poorer squatters, and especially tenants who simply cannot afford incorporation into the fully commodified formal economy. -- An article by Madeleine Bunting for The Guardian (UK) claimed that de Soto's suggestions would in some circumstances cause more harm than benefit, and referred to The Mystery of Capital as "an elaborate smokescreen" used to obscure the issue of the power of the globalized elite. She cited de Soto's employment history as evidence of his bias in favor of the powerful. https://www.theguardian.com/business/2000/sep/11/imf.commenthttp://www.slate.com/articles/news_and_politics/hey_wait_a_minute/2005/01/the_de_soto_delusion.html
Dr. Tomicah Tillemann is Director of the Bretton Woods II initiative. The initiative brings together a variety of long-term investors, with the goal of committing 1% of their assets to social impact investment and using investments as leverage to encourage global good governance. Tillemann served at the U.S. State Department in 2010 as the Senior Advisor on Civil Society and Emerging Democracies to Secretary Hillary Clinton and Secretary John Kerry. Tillemann came to the State Department as a speechwriter to Secretary Clinton in March 2009. Earlier, he worked for the Senate Foreign Relations Committee, where he was the principal policy advisor on Europe and Eurasia to Committee Chairmen, Senators Joe Biden and John Kerry. He also facilitated the work of the Senate's Subcommittee on European Affairs, then chaired by Senator Barack Obama. Tillemann received his B.A. magna cum laude from Yale University. He holds a Ph.D. with distinction from the School for Advanced International Studies at Johns Hopkins University (SAIS) where he also served as a graduate level instructor in American foreign policy.http://live.worldbank.org/node/8468https://archive.is/raDHA
Secretary Clinton appointed Tomicah Tillemann, Ph.D. as the State Department’s Senior Advisor for Civil Society and Emerging Democracies in October 2010. He continues his service under Secretary Kerry.
Mr. Tillemann and his team operate like venture capitalists, identifying ideas that can strengthen new democracies and civil society, and then bring together the talent, technology and resources needed to translate promising concepts into successful diplomacy. He and his team have developed over 20 major initiatives on behalf of the President and Secretary of State.
Mr. Tillemann came to the State Department as a speechwriter to Secretary Clinton in March 2009 and collaborated with her on over 200 speeches. Earlier, he worked for the Senate Foreign Relations Committee, where he was the principal policy advisor on Europe and Eurasia to Committee Chairmen, Senators Joe Biden and John Kerry. He also facilitated the work of the Senate's Subcommittee on European Affairs, then chaired by Senator Barack Obama. Mr. Tillemann’s other professional experience includes work with the White House Office of Media Affairs and five U.S. Senate and Congressional campaigns. He was a reporter with Reuters New Media and hosted a commercial radio program in Denver, Colorado.http://m.state.gov/md160354.htmhttps://www.newamerica.org/our-people/tomicah-tillemann/https://archive.is/u2yF0
Director of “Bretton Woods II” initiative at New America Foundation Bretton Woods was an international summit that led to the creation of the IMF and the IBRD, one of five members of The World Bank
Speaking to Clinton Global IntiativePrior to working at Edelman, my career has included serving as Deputy White House Press Secretary and Special Assistant to President Obama, Director of Public Affairs for the Office of the Director of National Intelligence, Director of Communications for the Senate Commerce, Science and Transportation Committee and its then Chairman Senator Rockefeller, Traveling Press Director for Secretary Hillary Clinton’s 2008 Presidential campaign, and Director of Communications for Secretary Madeleine K. Albright and her consulting firm, The Albright Group, LLC.https://medium.com/@jamieelizabethsmith/why-i-believe-in-the-blockchain-b19bf2014fab
Don Tapscott, co-author of the book “Blockchain Revolution,” hosted the meeting with his son and co-author Alex Tapscott at his family’s summer compound in Lake of Bays, Ontario. The group included some of blockchain’s biggest backers, including people with ties to IBM and JPMorgan. They considered ways to improve the governance and oversight of the technology behind the digital currency bitcoin as a way to fuel the industry’s growth. They included Jim Zemlin, executive director of the Linux Foundation; Brian Behlendorf, executive director of the Hyperledger Project, a blockchain supporter group that includes International Business Machines Corp., Airbus Group SE and JPMorgan Chase & Co.; and Ana Lopes, board member of the World Wide Web Foundation. Participants with blockchain industry ties include former deputy White House press secretary Jamie Smith, now chief global communications officer of BitFury Group Ltd., and Joseph Lubin, founder of startup Consensus Systems.
Was the founding director of the MIT Digital Currency Initiative -Left his 4 year post as White House Senior Advisor for Mobile and Data Innovation to go directly to the MIT DCI
Brian Forde has spent more than a decade at the nexus of technology, entrepreneurship, and public policy. He is currently the Director of Digital Currency at the MIT Media Lab where he leads efforts to mainstream digital currencies like Bitcoin through research, and incubation of high-impact applications of the emerging technology. Most recently he was the Senior Advisor for Mobile and Data Innovation at the White House where he spearheaded efforts to leverage emerging technologies to address the President’s most critical national priorities. Prior to his work at the White House, Brian founded one of the largest phone companies in Nicaragua after serving as a business and technology volunteer in the Peace Corps. In recognition of his work, Brian was named a Young Global Leader by the World Economic Forum and one of the ten most influential people in bitcoin and blockchain.https://www.linkedin.com/in/brianfordehttps://archive.is/WjEGU
Includes Accenture (See Avinash Vashistha), Allianz, Deloitte (Scaling Bitcoin platinum sponsor, Blockstream Partner), Citigroup, Bain & Company (parent of Bain Capital, DCG investor), Dalian Wanda Group (working on blockchain technology), Ernst & Young (see Paul Brody), HSBC (Li-Ka Shing, Blockstream investor, used to be Deputy Chairman of HSBC), IBM, KPMG International, Mastercard (DCG Investor), PwC (Blockstream partner, also sponsor of Scaling Bitcoin)
Future of Financial Services Report [PDF] The word “blockchain” is mentioned once in this document, on page 23 (http://i.imgur.com/1SxyneJ.png):We have identified three major challenge areas related to innovation in financial servicesthat will require multi-stakeholder collaboration to be addressed effectively. We are launching a project stream related to each area, with the goal of enabling tangible impact.... Decentralised systems, such as the blockchain protocol, threaten to disintermediate almost every process in financial services
Excerpt: BitFury - www.bitfury.com - The Bitfury Group develops and delivers software and hardware solutions for businesses, governments, organisations and individuals who want to securely move an asset across the Blockchain.
Blockchain in Banking & Financial Service Banking is mainly one of the most centralized and opaque industries, making the legacy financial ecosystem a prime target for Blockchain adoption. In the original Bitcoin white paper, cryptocurrency is labelled as a Peer to Peer (P2P) electronic cash system, highlighting the potential blockchain technology holds to transform the current financial ecosystem. Various characteristics of Blockchain such as decentralized, immutable, and transparency make it appealing for the banking and finance industries. The banking and finance sector is prone to errors and frauds being operating on the basis of highly dependent manual networks. This could lead to a crippled money-management system. As per Global Fintech Report 2017, 77% of Fintech institutes expect to adopt blockchain as part of an in-production system or process by 2020.
One of the most talked-about topics today is Blockchain in Banking & Financial Services. If fully adopted, it will enable banks & financial institutions to process payments more quickly and more accurately while reducing transaction processing costs. All major banks are looking to adopt blockchain which could be used for money transfers, record keeping, and other back-end operations. Traditional banks are highly aware of the potential blockchain technology holds to disrupt the financial sector. Major international banks — such as JPMorgan, Bank of America, and Goldman Sachs — are already heavily invested in the blockchain industry. The impact of Blockchain Technology in the Banking Sector is quite apparent. More than 1.7 billion individuals around the world currently lack access to basic banking or financial services as per the data released by the World Bank. Further studies were done by the World Bank showcase that blockchain technology holds powerful potential for promoting financial inclusion to the unbanked and underbanked.
Blockchain in Banking & Financial Services – Use Cases
Now, let’s briefly look at some practical use-cases for Blockchain in Banking & Financial Services industry: Fraud Reduction 45% of financial intermediaries like money transfer services and stock exchanges are prone to financial frauds routinely. Blockchain technology would help to get rid of some of the current crimes committed online against financial institutions. Know your Customer (KYC) Banks and Financial institutions spend anywhere from $60 million to $500 million yearly to process Know your Customer (KYC) and customer due diligence regulations as per a Thomson Reuters Survey. Blockchain would allow an organization to access the verification details of a client by another organization, thus avoiding repetition of the KYC process & reduction in administrative costs. Smart Contracts Smart contracts would be helpful in increasing the speed and simplifying complex processes when used for financial transactions. A Smart Contract will also ensure the transfer of accurate information as the transaction will be validated only if all the written conditions of the code are met. Clearing and Settlement The web network that records financial transactions costs investment banks billions of dollars to run. According to Accenture, the biggest investment banks could save $10bn by bringing in blockchain technology to improve the efficiency of clearing & settlement. Trade Finance Trade Finance which is paper-intensive is considered to be the most powerful application of blockchain. The electronic decentralized ledger that gives all the participants, including banks, the ability to access a single source of information and allows them to track all documentation and validation of ownership of assets digitally. Payments Blockchain brings higher security with minimal lower costs to process payment between organizations and their clients and even between banks themselves. It would eliminate all the intermediaries in the payment processing system.
Public blockchain specifically is a globally distributed ledger system. Its public & permission-less network is free and open for anyone to join, read, and write. Entire data is hosted on public servers. So, anonymity and data-privacy are significant challenges to be managed. In many aspects, the banking and financial industry stands on private, mission-critical and sensitive data. Very few aspects of this industry, apart from their promotional brochures, can probably fit into the world of public blockchains. On the other hand, Private and Permissioned Blockchain seem to be tailor-made for the financial industry with a built-in access-control mechanism. This indicates that only authorized personnel can join, read or write to this network. Depending on how we tune the access control, this can become a very powerful tool with trustworthiness and scalability to bounce. Private and Permissioned blockchain. Does this sound a lot like a fancy name for a distributed ledger technology? No, it’s not. The value a privately managed, fully-permissioned blockchain brings over traditional databases is integrity through cryptographically signed history. Conclusion In the current times, Blockchain as technology is getting well worth the attention in the financial sector which is beyond bitcoin bubble. If we take a practical approach, carefully study the design and performance characteristics of each blockchain implementation, it can turn out to be a game-changer to use in Blockchain in Banking & Financial Services industry. Moreover, some of the organizations are also investing heavily in such researches and tests conducted by startups to develop solutions based on the blockchain. With Private and Permissioned Blockchain entering the current scenario, a lot of problems could be solved while making the financial system more transparent, easy to access and reliable.
Crypto Rollercoaster: Explaining the Recent Market Performance
https://www.ccn.com/crypto-rollercoaster-explaining-the-recent-market-performance/ Just when it appeared that the cryptocurrency market was about to bottom out just a fortnight ago (with Bitcoin reaching a reported 14-month volatility low), the market subsequently started displaying indicators of a directional shift. Last week however, we saw a short-term appreciation in value. In typical crypto fashion it was just as rapid if not more so than the recent decline and Bitcoin, in particular, was observed to have exceeded “a key resistance level at $7,000 after breaking out of the $6,800 mark… crucial for the short-term recovery of Bitcoin.”. Right now however, we are looking at what some mainstream media organisations have described as an ominous price-crash: if not full-blown ‘meltdown’.
Causation Between News and Value?
The reasons for the crash – like many before – are likely plenty, such as the theory of market manipulation by wealthy crypto-barons, amongst other interested parties. Just looking at the news recently, we can identify a handful of reported events and moments which might have contributed, coincided with or preceded this rapid deppreciation in value. They include:
Goldman Sachs’ decision to shelf previously announced plans for opening a Bitcoin trading desk.
Speculative doubt stemming from recent pump-and-dumps which utilize the ‘Bitcoin’ moniker.
Prophetic warnings from pundits and other luminaries.
Looking at the Market
The large fall in value could be considered either a correction or a short relief. Either way, it is fair to say that if the market were to return to a more positive trajectory: we could expect the collective growth to be reflective year-over-year, exponentially. Coinschedule (an “ICO listing and cryptocurrency portal”) recorded $3.695 billion total funds raised in 217 from 209 ICOs. By compairson, the same site records 500% times more investment this year (up until August 2nd, 2018) – with $17.489 billion gathered from 686 ICOs so far. It is still important to bear in mind the sobering fact that a great number of ICOs and cryptocurrencies fail.
Additional Studies and Observations
Cezary Graf (AKA Crypto Poland) is a Polish blockchain enthusiast who recently shared a tweet which featured an image which depicted where ‘Bitcoin & The Crypto’ as a collective industry would place in Statista’s list of ‘The 100 largest companies in the world by market value in 2018 (in billions of U.S. dollars)‘. Graf’s post only provided information from the first page and 10 entries of Statista’s list. This suggests that the total industry value is comparable with the likes of Apple, Alphabet, and Amazon (The Big A’s) – whose combined value is over $2471.1 billion. Veering beyond these pages however and considering cryptocurrency’s overall market value has surpassed $262,5 billion. Comparatively it would fit it closer to 17th place – best resembling the following trio of financial industry giants.
Some of the great issues, conversely, plaguing the crypto market include fraudulent and scam ICOs: as well as honest projects which simply offer little to no value to justify their price or existence. This is in addition to (and arguably supported by) an almost universal lack of effective regulations or standards to prevent such tokens, and has led to some going as far as to call ICOs an ‘investment bubble’. If true, the space will prove unsustainable if it continues on its current trajectory: a claim which has been thrown around by those in the industry since at least the end of 2017. If, however, things continue as they are right now then we are likely to enjoy a profitable end of 2018.
Court of the Crypto Kings
No matter the market status: the value of many a cryptocurrency lies in their viability and practical effectiveness of their end-goals, and means of achieving them. Bitcoin of course is the original cryptocurrency and has established its value through its integrity (public whitepaper and open-source nature), as well as it’s practical effectiveness and the rate of adoption it has enjoyed upon implementation. Ethereum is arguably one of the most successful challengers to the BTC throne so far. The project helped to instigate the now-prevalent ‘Blockchain As A Service’ (BaaS) sector, and offers a platform upon which new utility tokens can be constructed – powered by ‘Ether’. Lightning Bitcoin is an example of the new market contenders. One of many which offer a direct and highly competitive alternative to many of the key features associated with Bitcoin. According to their website: ‘LBTC’s utilitarian value as a tradeable currency is boosted by its speed and low-cost transaction fees.
Looking at New Securities
Security Tokens’ comprise a much newer field, which has been quoted to have contributed to the major crypto-crash back in January 2018. The first of these digital securities contracts were sold in December of the previous year and expired the following month – and thus, correlated with the market drop. There has been a lot of news regarding security tokens over the past year, including attempts to either regulate or otherwise ensure a level of safety with regards to risk and fraud prevention, as well as protection of funds. These efforts come from a combination of governments and independent projects and organizations. MOBU is one of these projects and seeks to utilize a proprietary utility token (the eponymous ERC20 ‘MOBU’) to power its “end-to-end solution for ICOs to launch compliant security tokens on the blockchain.”. Features of MOBU cited include KYC / AML compliance integration, enforced and maintained through Ethereum based smart-contracts. This is in addition to what they call the “MOB20 protocol will define a set of commands that a compliant security token should implement.”
TL;DR: money makes the world go 'round. buy bitcoins before the dollar collapses. Global trends should be making everything cheaper, faster, and easier. But some things remain the same. Americans still aren't taught how to critically think in public schools. People across the globe are still hungry. Isn't it obvious that the people who make the rules, and the people who make the money - the people in charge - are not using this power and money for good? The reason these problems still exist is simply that fixing them is not profitable. But "profitable" is soon going to be an outdated notion. Money won't matter, if we reach the point where the whole world has been stripped to the bare earth and a few giant corporations own everything. In that world, who'll give a shit what's profitable? Everyone's lives will be equally bad, except for those at the top. The money system is controlled, collectively, by the bankers. (-1-, -2-) The banks create their profits by loaning money to companies and governments, creating debt. All that new debt has interest attached; the interest charges on the USA's debt, for the year 2010, were about half of the 2010 income tax revenue. (Right - half of 'our tax money' goes to the interest fees on Uncle Sam's credit card. After the other half is spent on other line items, there's still a couple trillion dollars worth of other bills. We've just been letting them pile up on the kitchen table for a couple of decades. See IOUSA, streaming on Netflix, or this data-packed site for further info on the USA's astronomical debt.) The US is cheating right now by making more money to pay some of these debts. (The Fed is not part of the government. It's a private corporation whose shares are owned by... Surprise! More bankers - JP Morgan, Chase Manhattan, Goldman Sachs, etc. These are the owners who get half of our tax dollars each year. Remember when we had to bail these same guys out a couple years back, because they bet all the mortgages at a roulette table and lost all their money? Fun times!) Understandably, other countries are grumbling about the US's unfair advantage. The dollar's value has just been dropping steadily since the Fed was invented 1933 - but since modern finance is based entirely on the dollar ('the world's reserve currency'), allowing the dollar to fail would be a very messy prospect. No countries have been willing to call us out on our shenanigans so far. But nothing good lasts forever; saying that the dollar can't fail is simply wishful thinking. Even the Council on Foreign Relations says that economically, we're no stronger than the rest of the G20. Wouldn't it be nice to neatly sidestep this collapsing system? We might have a chance with "Bitcoins." Bitcoins are a cryptocurrency. They're anonymous, and transactions can't be chargedback. This means, that for the first time ever, we might be able to set up a real free market, free of meddling by banks and governments. Digital cash brings a paradigm shift - for example, since bitcoins are anonymous, the government can't look in your bank account to see how much tax money they can take. There's many interesting ramifications of this idea; for one, if you want to buy drugs anonymously with anonymous cash no one can stop you. Bitcoins exist in a peer to peer network of clients, who run the Bitcoin software. All nodes talk to each other and follow an agreed-upon set of rules. These rules handle stuff like the exchange of bitcoins, preventing cheaters from spending coins that they don't own, and minting more money. The system seems pretty robust so far; and as more people use it, it gets stronger. There are 5.7 million bitcoins right now; worth about $0.75 each. The minting process will gradually slow down as the total supply of bitcoins approaches 21 million. I bought a couple hundred bitoins myself, because a) they're cool and b) if the system gets widely adopted, the value of each bitcoin will see some impressive gains. See bitcoin.org for the official client, mybitcoin.com for a much easier to use web client, bitcoin.it for a wiki. Go buy some bitcoins before the dollar collapses. Follow @bitcoinnews, check out the bitcoin.org forums and trade anything over the counter in #bitcoin-otc on chat.freenode.net. There's also /bitcoin. Technical details - Bitcoin is based on public-key crypto. Imagine a big pool of bitcoins; and imagine that each one has a different lock on it. These locks are here to prevent coins from being spent without the matching key. Everyone can see and examine all of the coins and the locks, but the keys are secret... only the person with the key can unlock the lock and spend the coin. Bitcoins are digital cash - if you lose the key to the lock on your bitcoins, you have no way to ever get a new one to unlock the coin. It's like dropping change down a storm drain. So, owning the key means that you effectively 'own' that coin. When a coin is 'spent,' the old lock and key are destroyed and new, different ones are created. The new owner gets the new key; now he 'owns' the coin because he's the only one who is allowed to spend it. You spend bitcoins in "transactions." Let's say Alice owes Bob ten bitcoins for some data. Alice sends out a message to the network, saying 'I am transferring ownership rights of these coins to Bob'. From now on, Bob owns the coins. The system makes a note of this transaction, and a few minutes later, the transaction is recorded in a "block." Blocks are lists of recent transactions that prove the transfer of ownership. About 6-8 blocks are usually generated per hour, so each block generally contains about ten minutes of transaction history. Every time a block is created, the creator is rewarded with some bitcoins. This is how bitcoins are created. There's a chain of blocks going all the way back to the first bitcoin that was created, in 2009; new bitcoins trickle in at a constant rate. (Over a period of decades this rate will slow to a trickle and stop; the total number of bitcoins that will ever exist is 21 million.) The transaction record stored in the chain of blocks is complete. There is a hard record of every bitcoin transaction that has ever taken place. Clients can look through this history to check if a transaction is legitimate - if Alice sends Bob her bitcoins, the network as a whole will cry foul when she tries to send the same ones to Claire later. This prevents cheating, because anyone who tries to simply create new bitcoins out of thin air will be ignored, since there's no record of the coins existing. However, note that until the Alice-Bob transaction is recorded in a block or three, ("confirmed,") it might be possible for Alice to send Claire the same bitcoins. In this case, the official ruling is, whichever transaction ends up in the next block counts as valid. (The nodes generating blocks will include the first transaction they receive, and ignore the later attempts.) Either Bob or Claire would get the bitcoins, the other would be SOL. So, to completely trust a transaction, you need to wait for the transaction to be confirmed. Incidentally I am planning a cross country road trip next month funded entirely by bitcoins.Follow me on Twitter, it's going to be an epic adventure! I plan on making a podcast and blog about my travels (maybe a documentary too if I can get my hands on a camera.)
Goldman, Sachs & Co. Christopher Wolf, CFA (212) 934-4221 [email protected] Goldman, Sachs & Co. Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in ... .report research. The Bitcoin price is plummeting and looking for a floor. Meanwhile big players on Wall Street are working on their grand entrance. At the forefront of this: Goldman Sachs. What to do if you are stationed in the middle of nowhere surrounded by super computers? Exactly, you mine cryptocurrencies. This happened in a Russian government research center in Sarov, a secluded city ... Goldman Sachs has claimed that bitcoin is a bubble bigger than the dot-com era and the famous Dutch tulip mania. In a research letter to investors, the banking firm’s analysts warned about the ... Goldman Sachs has published a report naming bitcoin and Ripple among the technology trends that could shape the future of global finance and payments. PDF On Mar 20, 2017, Michael Nofer and others published Blockchain Find, read and cite all the research you need on ResearchGate . Article PDF Available. Blockchain. March 2017; Business ...
GOLDMAN SACHS BITCOIN RESPONSE [PLUS HELPFUL IDEA WITH ALTCOINS AND 100$ BTC GIVEAWAY]
BREAKING: In further proof that Bitcoin BTC is going to absolutely EXPLODE over the next couple of years a Goldman Sachs Exec states it will not only do well, but DOMINATE ALL ASSET CLASSES for ... Goldman Sachs held a conference call for clients today on the "Implications of Current Policies for Inflation, Gold and Bitcoin" and turns out... Goldman Sachs ISN'T a fan of Bitcoin. Nope, not ... Get the Ledger Nano S to Safely store your Cryptocurrency! - https://www.ledgerwallet.com/r/acd6 Follow on Twitter - https://twitter.com/ThinkingCrypto1 Foll... 2020 Goldman Sachs TMT in San Francisco @ the Palace Hotel Feb 14th, Bitcoin and Blockchain Panel, Michael Carrier of Forge, Rod Hall of Goldman Sachs, Spencer Bogart of Blockchain Capital ... In this video, we cover Goldman Sachs's opinion on #Bitcoin, what level right now is most important for Bitcoin, and a very useful way to judge altcoins. Please make sure that you like and leave a ...