The price of bitcoin was trading at $10,026 on the South Korean exchange CEX while at the same time trading at $9,748 on US exchange Kraken as of early yesterday; the 3 percent spread was not the first time this happened and leaves open the potential for some to take advantage but also shows the immature nature of the market; this has been part of the reason why institutional investors have not fully bought in, though some have and the recent news from the CME could help to ease more concerns. Source.
The use cases of blockchain technology has increased significantly in 2017; Business Insider looks at how the technology behind bitcoin is being used in international payments, capital markets, trade finance, regulation, money laundering, insurance and peer to peer transaction; they also look at other industries like healthcare, real estate, media, energy and more. Source.
Goldman Sachs head of commodities research, Jeff Currie, told Bloomberg TV that bitcoin is a commodity though with less liquidity than gold; he explains, “"It's a commodity. A security, by definition, has a liability attached to it. Take a dollar bill, it has a liability to the US government. Commodities do not have liabilities.”; similar to gold it is not backed by a government or a company but is significantly more volatile. Source.
"Bitcoin, a New Asset Class" has been published by authors Chris Burniske and Adam White; in their research they identify bitcoin as an emerging asset class analyzing its characteristics over time; they find that its volatility has been decreasing while its price has been increasing; the authors make the case for including bitcoin as an investment in modern portfolio theory calculations; they expect the cryptocurrency to gain increased institutional investment and imply that including it in a modern portfolio theory managed account could help investors more efficiently manage the investment risk according to their risk tolerance. Source
Bitcoin blockchain split on August 1, and rumors are that Bitmain CEO Wu Jihan is the man behind the split; Wu Jihan is an aggressive supporter for Bitcoin Unlimited, which believes that the size of these blocks should be increased; Wu Jihan's company, Bitmain, is the world's largest bitcoin mining hardware manufacturer; the company also runs the world's biggest mining pool, AntPool. Source
This week, we engage deeply with Ray Dalio's economic research about American Empire, capitalism, and the structure of money and credit. His clear ideas and model of the macro economy help connect the dots between emerging schools of thought, like Modern Monetary Theory and Market Monetarism, and the scarcity-focused philosophies of Gold and Bitcoin. This exploration will give you tools for understanding the $2 trillion printed by the US government, as well as potential associated impacts on finance and society.
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Bill Miller discusses his $154 million hedge fund MVP 1 and its 30% allocation to bitcoin in a Wall Street Journal article; the fund is up 72.5% this year and according to a letter to investors the fund paid an average price of $350 per bitcoin; while his fund has done well he is aware of the risks that bitcoin could go to zero, providing his perspective in the article. Source
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