Alongside these warnings, the AMF has recently approved the first application for an Initial Coin Offering (ICO) within the country. New rules have also …
The top financial regulators of France have recently published a new list. This list consists of investment websites that do not have the proper authorizations to operate within the country itself. This includes various so-called digital asset service providers or DASPs.
The Typical Red Flags
BitcoinFrance was one of the more notable firms that came under the french AMF’s radar, having raised numerous red flags suggesting that it could be an investment scam. In particular, BitcoinFrance claims that its proprietary Bitcoin trading software can be accessed freely by users, but only if they deposit a minimum of $250 into it.
According to the app itself, it trades in various cryptocurrency markets, doing so on their clients’ behalf. It’s claimed that this app will generate earnings of $1,000 per day, claiming that these profits will be added without the need for risk. The AMF warned that these are bread-and-butter hallmarks of a typical financial investment fraud.
Trying To Regulate Crypto In France
The AMF made it clear that a complete list of unauthorized websites are available on its own website. The regulator did make sure to stipulate, however, that these domains may change exceptionally quickly, and that this list isn’t meant to be an exhaustive one.
These warnings come just as Paris is aiming to start policing crypto activities. Alongside these warnings, the AMF has recently approved the first application for an Initial Coin Offering (ICO) within the country. New rules have also been published regarding the licensing of DASPs, with further guidelines presented to firms applying for the license, which should be noted as non-mandatory, at least for now. Furthermore, guidelines were issued out regarding how to inform the regulator about internal cybersecurity practices, as well.
Italy Fighting Fraud Relentlessly
Just across France’s borders, Italy’s securities regulator, CONSOB, has blacklisted another array of crypto and FX-focused brands. This comes as more and more unauthorized parties within the finance space try to push into Italy’s online trading business as offshore brokers. This includes the cryptocurrency sector, which is still a bit of a legal grey area for Italy.
CONSOB stands as one of the most proactive and vigilant regulators within the European sphere, using its new legislative powers to mandate the internet service providers (ISPs) of its country to blacklist sites that the regulator deemed to be fraudulent. The process seems to be working, even if it’s essentially trying to drain a lake with a bucket.
Blockchain analysis firm Chainalysis has announced that it has entered a strategic partnership with the State of Wyoming Division of Banking to develop solutions to combat money laundering and other financial crimes.
Blockchain Technology to Be Used to Track Transactions
Chainalysis, in a detailed press release on September, 17, revealed key details of the partnership. According to the details, both parties would work together to mitigate money laundering, sanctions violations, and other crimes that utilize digital analysis.
Wyoming Division of Banking would integrate Chainlink products into their system and this would be used to verify a wide range of services including verification of banks’ compliance with anti-money laundering, Bank Secrecy Act, and other sanction requirements.
In addition, the Division would use Chainlink solutions to help law enforcement agencies conduct transaction testing and monitoring. The Wyoming Division of banking is the chief regulator within the financial sector of the state and supervises state banks, mortgage companies, and other non-financial firms.
Chainalysis co-founder Jonathan Levin believes that the partnership would help the Wyoming Division of Banking promote a safe and progressive regulatory system while furthering the adoption of digital assets in various sectors in the state.
“Chainalysis transaction monitoring is an important tool in helping them embrace virtual currency as the technology of the future of financial services while ensuring financial institutions and virtual currency businesses in their jurisdiction are compliant.”
Chainalysis is one of the top blockchain analytical platforms in the space and offers a variety of solutions to different organizations. It has become increasingly popular in the financial space where its solutions have been used to monitor large volumes of digital asset activity and also for the identification of suspicious transactions.
Wyoming Leading in Blockchain Adoption
The State of Wyoming has been one of the forerunners in blockchain adoption and regulation in the United States. The state authorized in 2019 a special legislature which created the legal framework for digital asset custody and fiduciary activities.
The State’s legislature also announced Earlier in March, BTCManager reported that the State’s legislature had created a new committee to foster the development of blockchain technology.
This latest partnership with Chainalysis is a good one and further highlights the potentials of blockchain technology in solving real-world problems.
Bitcoin is Not Like ICOs. We have emphatically stated over the years that the crypto-initial-coin-offering-token garbage that was being touted by nearly …
“The market seems overheated but it may just be getting started – proceed with cautious optimism,” is the sort of shite you’ll often hear pundits say. These sorts of wishy-washy statements tell you absolutely nothing useful, but since the pundits need to say something, they try to avoid speaking with conviction so you can’t call them on it later.
Then there are those who are overly confident in their convictions. “I’m more bullish now than I was before,” Chamath Palihapitiya told TechCrunch in an article yesterday which announced his fourth SPAC vehicle. He believes that investors have no choice but to be in equities because the risk-free rate is nearing zero. Given he’s one of the main men behind all this SPAC nonsense, he kind of has to be bullish, but he does raise a good point.
If you’re sitting on a whole bunch of cash right now, where’s a good place to put it? The Fed just said they won’t be raising interest rates for another three years at least. Many of us don’t share Mr. Palihapitiya’s optimism because of things like an upcoming U.S. election, or the global impact of “the Rona” which remains to be seen. What’s a safe haven to park cash in?
Some of you may be thinking gold, or the Swiss Franc, but the world’s leading thematic ETF provider thinks that bitcoin – ” the most compelling monetary asset to emerge since gold ” – is a good place to park cash.
Bitcoin is Not Like ICOs
We have emphatically stated over the years that the crypto-initial-coin-offering-token garbage that was being touted by nearly everyone wasn’t an asset class, nor was it an IPO replacement. Why? Because none of those tokens gave you equity exposure. Essentially, you were buying coupons to spend on a product or service that hadn’t been built yet. It was about as bad an idea as it sounds.
The same morons who couldn’t use common sense to figure out they were being fleeced by the whole ICO debacle have now moved on to their next money-making scheme – day trading over at Robinhood. If you decided to burn your money instead, the joules put off by the fire would be of more value than what you’d end up with as a “day trader.”
Then there’s bitcoin, the original gangster of cryptocurrencies.
Bitcoin – The New Gold
This is where some people immediately get turned off because they don’t understand how bitcoin works. It’s okay, we don’t either, but we do know the basics.
Blockchain is an infallible ledger that tracks who owns something of value. In the case of bitcoin, we use blockchain to track which wallets are holding bitcoins and how much. A bitcoin is simply digital money which holds value using the same illusion that gives paper money its value.
That’s about the extent we’re going to discuss the technical details. What we’re here to talk about are the two recently released white papers by ARK Invest analyst Yassine Elmandjra which make the case for investing in bitcoin. We’ve pored through all 48 pages of his research so you don’t have to. Here’s what we found.
ARK Invest’s Bitcoin Thesis
In 2009, the Internet birthed Bitcoin, the full ramifications of which are not well understood. Institutions have all the power and that can be bad. The idea of trust-based institutions is falling short. It gets pretty philosophical from there, and some of the usual arguments you hear from gold bugs are presented.
In short, the first white paper pontificates about how the current financial systems around the globe have problems that bitcoin can solve. If you’re the type of person who enjoys reading about economics, you might give the first white paper a read, but we’re more interested in the second white paper – Bitcoin as an Investment.
Often informed by incorrect assumptions, mainstream media has cast doubt on Bitcoin’s viability during the last 10 years while institutional investors have begun to research it as the birth of a new asset class.
Credit” ARK Invest
Investing in Bitcoin
If bitcoin followed the path of any other emerging technology, then it would be slowly crawling up Gartner’s “slope of enlightenment” right now as institutions start to realize they missed out on a whole lot of returns. The below two charts show how earlier adopters created some serious wealth if they HODL’d, and yearly returns have been consistent thus far.
While past performance is never an indicator of future performance, ARK believes there’s a whole lot more room for growth as institutions start to see bitcoin as an asset class. Consequently, they propose a $140,000 price target by 2025 – a return of about +1,200% based on today’s prices. Some use cases that could drive bitcoin to those price levels or even higher include:
Bitcoin as a global settlement network
Bitcoin as protection against the seizure of assets
Bitcoin as digital gold
Bitcoin as a catalyst for currency demonetization in emerging markets
In other words, there are many use cases for bitcoin that could drive the value up. Ultimately, ARK believes bitcoin should be seen as an alternative asset class, which means you should allocate some of your assets to it.
Bitcoin as an Asset Class
When a financial advisor tells you to allocate your wealth across property, fixed income, and stocks, that’s called “strategic asset allocation.” Real estate, bonds, stocks, gold, and cash are all asset classes. You decide what percentage of your wealth is allocated to each of them. ARK is suggesting that bitcoin is another asset class that you allocate some money towards.
ARK then goes on to talk about how bitcoin is negatively correlated to other popular asset classes, the same appeal that many other alternative asset classes offer. Frankly, it’s a whole lot more fun to invest in wine or art than it is in bitcoin, but point taken. The idea is that when all hell is breaking loose in the markets, and your 401K is down -30% in one week, alternative assets such as wine, art, or bitcoin remain unfazed. In the case of Vinovest, you can even choose to drink the wine, and temporarily forget about all those paper losses you shouldn’t be worrying about in the first place.
ARK’s analyst then goes on to talk about how institutions are still kicking the tires with bitcoin. The sell-side wants to make bitcoin products, and the buy-side wants to invest in bitcoin, but is there enough trading volume to support the whole thing? He then uses the term “de minimis,” and we quickly add it to our own vocabulary of words that make us sound more knowledgeable than we actually are.
In order to gauge how much bitcoin we ought to allocate our wealth to, he then whips out some Modern Portfolio Theory, sprinkles it with a bit of Sharpe Ratio, and finishes the whole thing off some Efficient Frontier charts. The verdict? Depending on your tolerance for risk, allocate anywhere between 0.03% and 25.78% of your wealth to bitcoin. He then moves on to talk about what’s on our minds most these days – risk.
The first risk involves custody. How do you go about buying bitcoin, and how can you make sure your investment is secure? While this isn’t really a problem for retail investors, institutions are subject to different rules. Then there’s regulation, the exact same thing that makes bitcoin so appealing. Rules can change. Finally, institutions could step in and muck things up.
There’s also another piece ARK put out which addresses concerns raised by investors. For example, we never liked the fact that whenever the bitcoin community disagrees on something, they “fork” it, creating another instance of bitcoin.
Bitcoin is too volatile – You don’t understand bitcoin. Its volatility actually highlights its credibility. Besides, it will become less volatile over time.
Bitcoin is a bubble – It has a potential to play the role of global money so you could argue it’s only getting started.
Bitcoin will lose value to “forks” and copycats – The value can’t be replicated by software alone.
Bitcoin is for criminals – It’s also censorship-resistant.
Bitcoin wastes too much energy – No more than gold or the entire banking system.
What To Do?
ARK’s influence needs to be taken into account here. They have the ears of everyone on Wall Street right now as their marketing prowess and a certain amount of serendipity have resulted in their leadership position in thematic ETFs. If ARK tells institutions that bitcoin is where they need to be, it almost becomes a self-fulfilling prophecy.
For retail investors or small family offices without the resources to research this domain any further than what ARK has already provided, you need to decide if you want exposure to this asset class. If ultra-high net worth individuals allocate 4% of their assets to art, there’s no reason not to do the same with bitcoin. It just becomes another uncorrelated alternative asset class to consider, albeit one that’s liquid and transparent.
While our dividend growth stock portfolio gives us an income stream that grows every year to outpace inflation, alternative assets such as gold, wine, and art, don’t produce any income streams. These are all asset classes that you should allocate money to as a defensive maneuver with a five-year (at least) time horizon.
So, is bitcoin better than gold? Gold bugs will argue that holding physical gold is the safest way to protect wealth as opposed to buying a gold ETF like GLD. True, but you need to consider things like storage and liquidity. Since gold and bitcoin have a correlation of 0.24, they’re nothing like each other when it comes to returns. The similarity is that one of these asset classes is used by institutional investors right now as a flight to quality while the other isn’t – at least not yet.
The full ramifications of bitcoin are not well understood, and Buffett tells us to not invest in things we don’t understand. The institutions that would be responsible for driving the bull cases for bitcoin are still kicking the tires. ARK believes that you can front-run their eventual capitulation to bitcoin.
If you’re thinking about allocating a small percentage of your assets to bitcoin, there’s a right and a wrong way to do that. In a coming piece, we’ll look at the best way to invest in bitcoin, no matter how much you decide to allocate.
Some of those involved in the ‘mainstream’ explosion of the crypto market in 2017 may recall DOT’s initial coin offering (ICO) — the fundraising event …
By Johel BurgosPosted on 18 September, 20200 Comments
Cryptocurrency Polkadot (DOT) took multiple crypto market enthusiasts by surprise by suddenly entering the Top 10 cryptocurrencies by market capitalization (data from CoinMarketCap). With a capitalization of almost $4.5 billion, DOT suddenly displaced other long-standing cryptocurrencies, such as Bitcoin Cash and Litecoin. Find out here the reasons why the unknown Polkadot became one of the most important cryptocurrencies on the market overnight.
Binance has grown exponentially since it was founded in 2017 and is now one of, if not the biggest cryptocurrency exchanges on the market.
Capitalisation surge: Polkadot jumped more than 2,000 positions in the cryptocurrency ranking
As bitcoin.com reported at the end of August, Polkadot’s market capitalization soared. Soon after the report was published, Polkadot had not gone through the verification process of CoinMarketCap to confirm the veracity of the capitalization, which left it in position 2,172 of the ranking of cryptocurrencies.
However, it only took a few days for CMC to do the same for DOT’s capitalization to go from $0 to a peak of over $5.23 billion. This ascent caused Polkadot to leave behind other industry leaders TRON, EOS, Cardano and Binance Coin.
However, a price hike wasn’t exactly what made Polkadot rise to prominence in recent weeks. Despite a significant increase in price — with gains of more than 100% — a critical move by the team behind Polkadot is responsible for her sudden capital appreciation.
Redenomination: the key to understanding the rise of Polkadot
To understand the progress Polkadot has made this year, it is important to understand two points. Polkadot’s creators call it a “web 3.0 platform for blockchain interoperability”. This allows for the creation of blockchains in only a few minutes through the Substrate Network for “true blockchain interoperability”.
Another key point in the functioning of the ecosystem is decentralized governance, which gives voting power to the “stakers” or owners of DOT coins. Thus, decisions about the development of this project are left to the “stakeholders” themselves. Important advancements in 2020 include the launch of the Polkadot mainnet in May, whereby the mainnet became no longer dependent on Ethereum, meaning that DOT was not an ERC20 token.
However, the real trigger for the DOT rise was the so-called “redenomination” of tokens, a concept similar to the stock split that traditionally occurs on the stock market. In the case of DOT tokens, the community’s own vote decided to redenominate DOT coins in a 1: 100 ratio on August 21. In other words, a ‘New DOT’ is 100 times smaller than its previous version.
In turn, this multiplies the circulating supply of coins by 100, meaning that there are now up to 1 billion DOT tokens circulating on the market. Although this does not change the price of the coins, it does make them more attractive to smaller investors due to the perception that the coin is more affordable, which will hypothetically increase liquidity.
Furthermore, the community decided that DOT token transferability would be possible on public markets or exchanges, a decision for which early investors had to wait almost three years.
Binance has grown exponentially since it was founded in 2017 and is now one of, if not the biggest cryptocurrency exchanges on the market.
Patience has rewarded 1,000s of investors who participated in the Polkadot ICO in 2017
However, Polkadot is nothing new in the world of cryptocurrencies. Some of those involved in the ‘mainstream’ explosion of the crypto market in 2017 may recall DOT’s initial coin offering (ICO) — the fundraising event prior to the launch of the tokens — was held that same year. It was one of the largest collections of the ICO fever in 2017: the tokens offered were sold out in just three days and the group managed to capitalize more than $144 million for the development of the project.
Polkadot’s DOT token is valued at $ 5.35 as of the publishing date of this article. When compared with the price during the ICO stage (close to $ 0.29 according to CoinCodex), the return on investment of the participants of the initial offer amounts to more than 1,700% in less than three years.
The launch of the tokens did not occur until the third quarter of 2019 and, although investors already had the DOTs in their possession, the issued tokens had a non-transfer clause. Finally, the tokens were released on block number 1 205 128 of its blockchain, allowing investors to collect their substantial profits after almost 3 years of waiting.
The DeFi Revolution and the Future of Polkadot
Another factor driving Polkadot has been the DeFi cryptocurrency revolution. Projects based on decentralized finance have gained traction this year, becoming the fastest growing and most coveted crypto niche.
An example of this has been Chainlink, another of the cryptocurrencies with substantial growth that this year also sneaked into the top 10 of the CoinMarketCap ranking. Now though, LINK has ceased to be the leader of the DeFi space after the rise of Polkadot. Although CMC does not yet name DOT as a DeFi coin, this could happen soon.
As CoinDesk reports, Polkadot will have an ecosystem available for the issuance of tokens under a simple and fair protocol. The token issuance mechanism will be similar to Ethereum’s ERC20 standard, making Polkadot a threat, or at least a competitor, to the leader in the decentralized development arena.
Peruse on to find solutions to three basic legends with respect to Bitcoin, the most popular virtual currency in the world. If you investing in bitcoins then …
Nowadays Bitcoin is all over the place. In China, which presently represents half of the everyday world bitcoin trade, its cost has soared. In the U.S. it was the second of two U.S. issues Tuesday. Hearings in the House. Silicon Valley wagers millions on it, and U.S. top national investor Ben Bernanke said for the current week that unregulated virtual monetary standards “convey long haul guarantees. In the not so distant past, the vast majority viewed Bitcoin just as a transient trend or a crypto-geeks sport, on the off chance that they knew it by any means. The impetuous substance, as it’s possible fate, has been taken as guaranteed: powerlessness to change business as usual, joined by superfluity. It wasn’t until April 2013 that the exchanging estimation of Bitcoin came to $200 that most major news sources initially came to know.
However, in light of the fact that there’s more data currently out there about Bitcoin doesn’t mean you need to think all that you hear. Peruse on to find solutions to three basic legends with respect to Bitcoin, the most popular virtual currency in the world. If you investing in bitcoins then visit teeka tiwari 5 coins
• Bitcoin is to hoodlums only computerized money.
In 2011 Bitcoin first came to open consideration as the domain’s coin for Silk Lane, an online bootleg market for unlawful medications, bogus IDs and other fake merchandise and enterprises. Toward the beginning of October, Silk Road was closed somewhere around the Federal Bureau of Investigation and its alleged originator, Ross William Ulbricht, captured in San Francisco. Bitcoin’s cost plunged forcefully yet quickly recuperated and has now hit statutes that would just have been impossible weeks sooner.
Nonetheless, meanwhile, there is an expanding network of authorized Bitcoin firms — numerous with venture capital and organizations holding onto Bitcoin as lawful delicate. An early speculator in PayPal, Plug and Play Innovation Center is opening a quickening agent program explicitly for Bitcoin-related new companies
Speculators contributed an aggregate of $12 million to Bitcoin new companies among April and June 2013, as indicated by counselling organization CB Insights. All things considered; the speculation rate would appear to quicken. Lightspeed Investment Capitalists in cooperation with their Chinese partner have recently put $5 million in BTC China, the greatest Bitcoin trade on the planet. What’s more, central government authorities move away from Bitcoin’s portrayals of the sole area of guilty parties. “Malignant entertainers’ abuse is an issue influencing a wide range of money related assets and isn’t explicit to virtual cash systems,” Mythili Raman.
• Bitcoin moves are secret, and can not be checked.
After its origination, Bitcoin has gotten inseparable from mystery, and secrecy, so you don’t have to have a Social Security number, ledger, or any close to home data to change over through Bitcoin. Truth be told, any Bitcoin exchange on something many refer to as the blockchain is ever archived openly. This open log maintains a strategic distance from exploitative direct, including individuals contributing double the equivalent bitcoins. Furthermore, despite the fact that following certain open buys back to clients’ genuine personalities is troublesome, it’s certainly feasible. Researchers at the University of California, San Diego and George Mason University later developed a Bitcoin market reference that law enforcement may use to monitor the production of bitcoins from illegal outlets to legal organisations such as Bitstamp and various trades. In the U.S., trades are relied upon to enable their clients to unveil distinguishing subtleties, so a warrant may uncover the genuine name of a suspect.