Week ending November 5th, 2017
Your weekly roundup of all things crypto brought to you by Coin Street
Neil’s Market Wrap
As I write this the price of a single Bitcoin has cruised through $7500.
Seven and a half thousand dollars each.
That is quite simply incredible.
Every threshold, resistance, trend line and projection has been smashed. Every week I say a correction must be coming just round the corner and every week Bitcoin hits an all time high.
The train just keeps rolling.
The big story this week and probably the reason, at least in part, for the most recent surge in price is the news from the CME group that they are going to be offering Bitcoin futures as a derivative product before the end of the year. (Source).
If you don’t know who the CME are or why that’s a big deal, let me break it down for you quite simply. The Chicago Mercantile Exchange is the worlds largest and most diverse derivatives market place. It is bigger than any equivalent in any city including New York or London. Every giant wall street hedge fund, every back alley trading firm, every Joe sole trading broker in every corner of the world has an account with the CME and access to their products. Listing a Bitcoin futures product is not only unheard of, it enables access to the space like we have never seen before.
It gives everyone from retail mom and pop investors right through to giant multi billion dollar hedge funds access to Bitcoin in a safe, reliable fashion through a recognised and familiar avenue without actually ever being exposed to the complicated and often confusing world of actually buying bitcoin. This is as big a piece of news as Bitcoin has arguably ever seen. With the promise of this sort of exposure to the retail markets who knows what this will mean for the price longer term.
One thing is for sure there is only one game in town. The alt coins have no choice but to sit on the sidelines and hope they get a look in soon. Bitcoin is back to 60% market dominance. The sheriff of crypto is here and he’s laying down the law.
This Week’s Highlights
Big name investors are backing Bitcoin
Bill Miller, former chairman of Legg Mason Value Trust mutual fund, and current chairman of Miller Value Partners LLC, has revealed that bitcoin holdings comprise approximately 30% of the assets in Miller Value Partner’s MVP 1 hedge fund.
Mr. Miller states that the MVP 1 hedge fund has gained in value by approximately 72.5% so far during 2017. (Source)
Amazon look to be accumulating crypto web addresses
Whether this actually means anything or not is speculation, it could very well just be brand protection nonetheless any mention of Amazon and crypto in the same sentence gets a lot of people very excited. (Source)
Coinbase adds 100,000 new users in one day.
The Bitcoin surge shows no sign of slowing down. It seems like only yesterday we were celebrating Coinbase’s 10 millionth user (fact: it was September 5th). Now, they’re up to 12 million. And they added 100k new accounts in a single day. Booming. (Source)
Canadian VC gets caught bare faced lying.
As Forbes report, Alex Tapscott’s Crypto VC Firm NextBlock Global, a venture capital company investing in digital assets that is going public in Canada and raising $100 million CAD ($77 million USD), falsely named four blockchain stars as advisors in an investor document, this however turned out to be, not to put too fine a point on it, a lie. Oops. (Source)
Bitcoin mining is outrageously energy inefficient.
We have seen this discussed before but now one analyst has worked out that the power used to process Bitcoin transactions averages out to a shocking 215 kilowatt-hours (KWh) of juice used by miners for each Bitcoin transaction (there are currently about 300,000 transactions per day). Since the average American household consumes 901 KWh per month, each Bitcoin transfer represents enough energy to run a comfortable house, and everything in it, for nearly a week. On a larger scale, De Vries’ index shows that bitcoin miners worldwide could be using enough electricity at any given time to power about 2.26 million American homes. (Source)
Furthermore, when using barrels of oil as the metric it doesn’t look any rosier with the total Bitcoin mining industry using 13,239,916 barrels of oil equivalent. (Source).
Norwegian mining company launches first asset backed ICO.
While the world debates whether blockchain-based Initial Coin Offerings are a fraudulent pyramid scheme, meant to take advantage of gullible investors who are desperate to get rich quick, or a revolutionary “post-equity” way of raising capital, a Norwegian mining company, Intex Resources ASA, has taken the next step and last week announced it was issuing the world’s first asset-backed Initial Coin Offering, with the resulting tokens being exchangeable for the physical collateral. (Source)
Tezos Trouble: Class action lawsuit filed against infamous ICO
The lawsuit filed in San Francisco, alleges that Tezos’ organizers violated U.S. securities laws and defrauded participants in the online fundraiser. This could spell big, big trouble. Other ICO’s should be looking around nervously. (Source)
Floyd, Floyd, Hey Floyd, We’re looking at you
In a predictable development out of D.C., the SEC published a statement warning that celebrity endorsements of ICOs may be unlawful if they don’t disclose the nature, source, and amount of any compensation paid. Does this mean that Floyd will need to get back in the boxing ring to keep the cash flowing? (Source)
And finally, as usual, we finish with someone saying Bitcoin is a bubble.
Blah Blah Bubble Blah. Bitcoin hit $
7000 $7500 this week. (Source)
That’s a Wrap
That’s all for this week. It’s a fast moving space. They say one week in crypto is a year in the real world.
Can we ask one favor please?
See you next week.