Archive for the ‘Bitcoin’ Category

Bitcoin, Ether are like gold says Cathie Wood, but Ray Dalio is skeptical – Cointelegraph

Recent turmoil in the banking sector has shown that Bitcoin (BTC) and Ether (ETH) can withstand a shaky economy, outperform other asset classes and function like gold, says ARK Invest CEO Cathie Wood butone long-time investor still isnt sold.

Wood said in an April 15 interview that Bitcoins resilience throughout the most recent banking crisis has been the most remarkable of all indicators her tech-focused investment management firm is monitoring.

Bitcoin and Ether are now acting as risk-off assets and as a flight to safety for investors amid macroeconomic uncertainty, she claimed:

We would say that there is a flight to safety, certainly led by crypto assets, and it is telling us that the world is transforming and will continue to transform. You cannot stop innovation, she added.

Wood thinks cryptocurrency will eventually become an election issue when the sector becomes more broadly accepted, and the public can more clearly see the kinds of regulatory pressure that the United States government is applying on the industry to maintain centralized control of money and monetary policy.

Not all share Woods sentiment.

Ray Dalio, the founder of Bridgewater Associates the worlds largest hedge fund by assets under management saidin an April 12 interview that Bitcoin could not serve as an effective currency because it is too volatile and central banks wont adopt it:

They can outlaw [Bitcoin]. They can regulate it. Central banks and countries pretty much dont want it anyway, he said, adding that it gets attention way out of proportion to its size.

Related: Bitcoin likely to outperform all crypto assets following banking crisis, analyst explains

Dalio strengthened his case by pointing out that gold is the third largest reserve held by central banks, trailing only the U.S. dollar and euros.

Despite previously describing Bitcoin as one hell of an invention, Dalio recently said that he instead wants to see an inflation-linked coin be built that would serve to ensure consumers secure their buying power.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom

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Bitcoin, Ether are like gold says Cathie Wood, but Ray Dalio is skeptical - Cointelegraph

SMALL CAP IDEAS: Where can UK investors find alternative exposure to bitcoin? – This is Money

By William Farrington At Proactive Investors For This Is Money 13:49 17 Apr 2023, updated 17:17 17 Apr 2023

Those of you with eyes on the markets will know that the best-performing asset class of 2023 has not been equities, real estate, bonds or gold, but bitcoin, the world's first and largest cryptocurrency borne from the ashes of the 2008 global financial crisis.

Bitcoin was originally conceived by pseudonymous developer Satoshi Nakamoto as a decentralised payment network without the need for a third-party financial institution.

While bitcoin has failed to cement itself as a genuine cross-border payment network primarily due to prohibitive transaction charges and sluggish transaction speeds the digital currency has been rebranded by its evangelists as a sort of inflation hedge, an alternative store of value with a finite circulating supply that is impossible to be diluted.

So it comes as no surprise that since the start of 2023, bitcoin's spot price has skyrocketed over 80 per cent, surging past $30,000 earlier this month for the first time in nine months.

Financial analysts and Twitter handles will continue to lock horns over the credibility of the so-called 'digital gold', but for the investor seeking to diversify their portfolio without the technical hassles of managing crypto wallets and untrustworthy crypto exchanges, what is the best way to gain exposure?

For physical gold, the answer is easy: The London Stock Exchange is a global hub for small-cap gold exploration and production groups; Shanta Gold, Caledonia Mining, Greatland Gold and Ariana Resources to name a few.

Though far less developed, there is also a burgeoning bitcoin mining segment at the lower end of the London capital markets.

Bitcoin miners use long rows of specialised computers to solve complex equations that help the bitcoin network run, receiving newly minted bitcoins in return. This makes start-up costs high, but margins tend to also be high once operations get up and running.

Argo Blockchain (12.75p), saved by the sale of its Texas-based Helios bitcoin-mining facility to Galaxy Digital, is the most established name (its 78 per cent year-to-date performance underscores perfectly how bitcoin miners reflect the market price of bitcoin).

There is also Quantum Blockchain (1.58p), the AIM-quoted group with an interest in the arcane world of quantum computing.

Chief executive and Italian theoretical physicist Francesco Gardin leads a research and development team trying to develop a new way of mining bitcoin using proprietary algorithms to give miners a competitive edge.

These companies are as risky as the cryptocurrency underpinning their operations, though there will soon be another route to bitcoin exposure.

The London Stock Exchange Group has just teamed up with digital asset derivates platform Global Futures and Options (GFO-X) to bring regulated bitcoin futures and options products to UK investors for the first time ever.

Paris-based clearing house LCH, which is owned by the London Stock Exchange Group, will facilitate the transactions via a new, segregated service called DigitalAssetClear.

GFO-X called it 'the first steps to extracting efficiencies from new technologies within a traditional market structure, with the goal over time of delivering 24/7 trading to global regulated digital asset markets'.

DigitalAssetClear will bring bitcoin derivatives products into the regulated market a year after the Financial Conduct Authority prohibited Binance, Coinbase and other trading platforms from offering them.

The partnership also offers a glimpse of prime minister Rishi Sunak's plans to make the UK a 'global crypto hub'.

All things considered, the options for UK retail investors seeking alternative exposure to bitcoin prices are objectively limited, albeit growing.

But if bitcoin prices sustain the rapid momentum we have seen in the latest calendar year, there is a good chance that we'll see more miners, innovators and derivatives platforms coming to the public markets.

London could be particularly well-placed to draw IPO interest, if, as is the generally accepted case, bitcoin is treated as a commodity in a similar vein to physical gold rather than a tech-adjacent security.

The other fundamental question each person must ask themselves is: Should I risk an investment?

The numerous controversies over the past 12 months, from the dramatic collapses of Three Arrows Capital and FTX to the more recent closures of crypto-focused US banks Signature and Silvergate, have besmirched the reputation of crypto as a respectable asset class, but bitcoin sits apart from the Wild West that is decentralised finance, NFTs and others.

Unlike gold, bitcoin has no intrinsic value and it certainly does not earn a yield in the way a security does, but that has not stopped institutional adoption from ploughing ahead, whether that's commission-free trading offered by Fidelity or BlackRock launching a private bitcoin trust to US clients.

The message remains as always, do your research , keep your wits sharp and there will be opportunities.

Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.

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SMALL CAP IDEAS: Where can UK investors find alternative exposure to bitcoin? - This is Money

Anthony Scaramucci Is Bullish As Ever, Says Bitcoin Is ‘Definitely A Commodity – Decrypt

For all the knocks hes taken from and over his interest in crypto markets, Skybridge CEO Anthony Scaramucci says he hasnt lost any enthusiasm for Bitcoin.

Im not a cold figure in this space. Im not an evangelist. Im not one of these religious figures thats going to chant Bitcoin ber alles no matter what is going on in life, he told Decrypt during a recent interview for the gm podcast. So I want to frame it from that perspective, and then tell you that Im more bullish now than Ive ever been.

Hes up against some strong headwinds. By the time Sam Bankman-Frieds crypto exchange FTX filed for bankruptcy in November, hed become professionally and personally close to Scaramucci. They partnered to host the Crypto Bahamas conference last April. In September, FTX acquired a 30% stake in SkyBridge for $40 million. And when Bankman-Frieds empire went bust, Scaramucci said on CNBC that he was working to buy the equity back.

Now, hes got his sights set on Bitcoins next boom cycle and hoping that regulators can get out of their own way. The way he sees it, Bitcoin really started accumulating interest from a wider audience from late 2021 through the end of 2022.

Prior to that, there was sort of a microbrewery known as Bitcoin. And people liked the beer that was coming out of the microbrewery, Scaramucci said. And then all of a sudden it had this Budweiser Light distribution explosion where everyone in the world and their mother was talking about Bitcoin.

But he wouldnt go so far as calling himself a Bitcoin maximalist. They have no willingness to compromise, Scaramucci said. They have guns and ready-made food in their basement and they hate the government.

He had harsh words for regulators, tooespecially Securities and Exchange Commission Chair Gary Gensler.

None of the stuff that he does makes any sense to me, Scaramucci said. He's got the SEC in complete disarray. He also posited that Massachusetts Senator Elizabeth Warren has been acting like shes Washington's shadow president for financial services.

So he takes some solace in the fact that, at least according to him, Bitcoin should be categorized as a commodity and not regulated by the SEC.

I think it feels like money to me and feels like a commodity, he said. I think that these things that earn, or you have these staking positions where foundations give you more of something, I think anything that has an earning mechanism to it probably is a security.

Scaramucci said: We need this, you know guys. Hong Kong is open for business for crypto. They're not stupid. They go, Ah, the U.S. is gonna blow this. That's fine, we're gonna switch our position. The UK: They screwed up with Brexit. They all know it, but they're open for business for crypto. You know, our supposedly socialist neighbors to the north have two or three cash Bitcoin ETFs. We've got Gary Gensler and Elizabeth Warren.

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Anthony Scaramucci Is Bullish As Ever, Says Bitcoin Is 'Definitely A Commodity - Decrypt

Coinbase Isn’t Profiting From Bitcoin’s Big Rally. Why This Time Is Different. – Barron’s

Bitcoins rally to start 2023 has spurred calls of a new bull market, with the largest cryptocurrency gaining 80% to vastly outperform the stock marketwhere the S&P 500 is up a meager 7% by comparisonas a leading indicator of risk sentiment.

This time might be different.

Investors excited about Bitcoins rally to $30,000 might be in for a rough awakening when they realize that it didnt boost trading volumes at Coinbase , Dan Dolev, an analyst at Mizuho Securities, wrote in a Thursday note. Coinbases average daily volumes are less than $1 billion in April versus $1.6 billion in March, he added.

We believe large institutional players are buying Bitcoin in hopes that retail would follow. Yet, retail seems uninterested, Dolev said. This is not a broad-based crypto renaissance.

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Mizuho rates Coinbase stock at Underperform with a $30 price target. Shares in the broker were up more than 102% this year, opening Thursday at $69.89.

However, there are other, alternative signs that there is momentum behind smaller U.S. investors coming back to crypto.

For one, the recent growth in Bitcoin wallets is concentrated among the smallest holders. The number of wallets holding at least 0.01 Bitcoinabout $300has risen more than 3% since the start of 2023, according to crypto data group Messari. Growth gets smaller as wallets get bigger: The number of wallets holding at least one Bitcoin has grown around 1.5%, while wallets with more than 10 Bitcoin are up just 0.5%.

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There is also the so-called Coinbase Premium Gap, a metric tracked by data firm Crypto Quant that measures the difference between Bitcoin prices quoted on Coinbase and those on Binance, the worlds largest crypto exchange. Since Coinbase is most popular in the U.S. and Binance is an offshore behemoth, the gap indicates how crypto demand among Americans stacks up relative to the rest of the world.

After spending much of 2022 in discount territory, the Coinbase Premium has been positive for most of 2023 and was sitting around $25 on Wednesday.

Coinbase releases its first-quarter financial results, likely in Mayand where Bitcoin prices will be then, who knows?and hopefully will provide some guidance for the current quarter, which includes Bitcoins latest bullish jump.

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Until then, however, there is at least some reason for optimism.

Write to Jack Denton at jack.denton@barrons.com

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Coinbase Isn't Profiting From Bitcoin's Big Rally. Why This Time Is Different. - Barron's

The Price of Bitcoin Mining and More: The Week in Reporter Reads – The New York Times

This weekend, listen to a collection of articles from around The New York Times, read aloud by the reporters who wrote them.

Written and narrated by Gabriel J.X. Dance

Winter Storm Uri had knocked out power plants across Texas, leaving tens of thousands of homes in icy darkness. Meanwhile, in the husk of a onetime aluminum smelting plant an hour outside of Austin, row upon row of computers were using enough electricity to power about 6,500 homes as they raced to earn Bitcoin, the worlds largest cryptocurrency.

The New York Times has identified 34 such large-scale operations, known as Bitcoin mines, in the United States, all putting immense pressure on the power grid and most finding novel ways to profit from doing so. Their operations can create costs including higher electricity bills and enormous carbon pollution for everyone around them, most of whom have nothing to do with Bitcoin.

Until June 2021, most Bitcoin mining was in China. Then it drove out Bitcoin operations, at least for a time, citing their power use among other reasons. The United States quickly became the industrys global leader.

Written and narrated by James Poniewozik

Im so sick of smiling, Danny Cho (Steven Yeun) says in the first episode of Netflixs Beef. You may have noticed that hes not alone in this. Blame it on the pandemic, the culture, the economy, but people are mad right now, on planes and on trains and like Danny and his car-crossed antagonist, Amy Lau (Ali Wong) in automobiles.

Beef, a dark comedy about a road-rage incident that careers disastrously off-road, has good timing, but thats not enough to make a great TV series. What makes this one of the most invigorating, surprising and insightful debuts of the past year is how personally and culturally specific its study of anger is. Every unhappy person in it is unhappy in a different and fascinating way.

Written by Nico Grant and Karen Weise | Narrated by Nico Grant

In March, two Google employees, whose jobs are to review the companys artificial intelligence products, tried to stop Google from introducing an A.I. chatbot. They believed it generated inaccurate and dangerous statements.

Ten months earlier, similar concerns were raised at Microsoft by ethicists and other employees. They wrote in several documents that the A.I. technology behind a planned chatbot could flood Facebook groups with disinformation, degrade critical thinking and erode the factual foundation of modern society.

The companies released their chatbots anyway. The aggressive moves by the normally risk-averse companies were driven by a race to control what could be the tech industrys next big thing generative A.I., the powerful new technology that fuels those chatbots.

Written and narrated by Erika Solomon

Russian and Danish naval vessels that disappear in the Baltic Sea, days before an underwater pipeline blast. A German charter yacht with traces of explosives, and a crew with forged passports. Blurry photographs of a mysterious object found near a single surviving pipeline strand.

These are the latest clues in the hunt to reveal who, last Sept. 26, blew up most of the Kremlin-backed Nord Stream pipelines, some 260 feet below the Baltic Sea, that were once the largest supplier of Europes natural gas. A flurry of new findings and competing narratives has sown distrust among Western allies and presented an opening for Russian diplomatic pressure that has raised the geopolitical stakes in Europes Baltic region.

Nowhere is the tension felt more strongly than among the 98 residents of Denmarks Christianso an island so tiny, you can walk across it in 10 minutes. Living just 12 nautical miles away from the blast site, everyone from the herring pickler to the inn chef sees skies and waters filled with foreboding.

Mornike Giwa Onaiwu was shocked when day care providers flagged some concerning behaviors in her daughter, Legacy. The toddler was not responding to her name. She avoided eye contact, didnt talk much and liked playing on her own.

But none of this seemed unusual to Dr. Onaiwu, a consultant and writer in Houston.

I didnt recognize anything was amiss, she said. My daughter was just like me.

Legacy was diagnosed with autism in 2011, just before she turned 3. Months later, at the age of 31, Dr. Onaiwu was diagnosed as well.

Autism, a neurodevelopmental disorder characterized by social and communication difficulties as well as repetitive behaviors, has long been associated with boys. But over the past decade, as more doctors, teachers and parents have been on the lookout for early signs of the condition, the proportion of girls diagnosed with it has grown.

The Timess narrated articles are made by Tally Abecassis, Parin Behrooz, Anna Diamond, Sarah Diamond, Jack DIsidoro, Aaron Esposito, Dan Farrell, Elena Hecht, Adrienne Hurst, Emma Kehlbeck, Tanya Prez, Krish Seenivasan, Kate Winslett, John Woo and Tiana Young. Special thanks to Sam Dolnick, Ryan Wegner, Julia Simon and Desiree Ibekwe.

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The Price of Bitcoin Mining and More: The Week in Reporter Reads - The New York Times