We use Bitcoin ;) - page 44

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Bitcoin's on the rise again so what's next in 2016? Love, loathe, fear or ridicule it the Bitcoin is here to stay for a while yet As we look ahead to 2016, and ForexLive prepares its own forecasts, here's a piece of week-end reading from Bloomberg

"While the hype may have faded a bit, 2015 was still a busy year for bitcoin. Venture capital investments topped $1 billion for the first time. People are finding it easier to invest in the digital currency, thanks to the debut of firms such as Bitcoin Investment Trust. Big financial companies-Nasdaq, American Express and Visa- invested in Bitcoin startups.

So what's in store for 2016? We'll probably see the first bitcoin company valued at more than $1 billion, a self-imposed slowdown in new bitcoin production (which will put some miners out of business) and more financial institutions embracing the currency and its technology. The main unknowns are the price, consumer adoption and-as always-the real identity of Bitcoin's creator, Satoshi Nakamoto. This all comes as Bitcoin trades near year-highs, at around $438 on Friday"

 
theNews:
Bitcoin's on the rise again so what's next in 2016? Love, loathe, fear or ridicule it the Bitcoin is here to stay for a while yet As we look ahead to 2016, and ForexLive prepares its own forecasts, here's a piece of week-end reading from Bloomberg

"While the hype may have faded a bit, 2015 was still a busy year for bitcoin. Venture capital investments topped $1 billion for the first time. People are finding it easier to invest in the digital currency, thanks to the debut of firms such as Bitcoin Investment Trust. Big financial companies-Nasdaq, American Express and Visa- invested in Bitcoin startups.

So what's in store for 2016? We'll probably see the first bitcoin company valued at more than $1 billion, a self-imposed slowdown in new bitcoin production (which will put some miners out of business) and more financial institutions embracing the currency and its technology. The main unknowns are the price, consumer adoption and-as always-the real identity of Bitcoin's creator, Satoshi Nakamoto. This all comes as Bitcoin trades near year-highs, at around $438 on Friday"

Yes their is a lot of Interest in the Bitcoin these days and we have to see how much it will get UP and what is the fair price value at which it can get stabilised

 

11 Bitcoin Startups That Went Bust in 2015 This year was a time of further consolidation for the bitcoin industry.

After what you might call a 'Wild West' period (when it seemed everyone with the urge was setting up their own bitcoin-based service), the space is now rapidly becoming more dominated by bigger, more professional outfits, often with serious funding to get them off to a solid start.

And while some big bitcoin names made the news this year for positive reasons, some firms had to report that they were closing down.

A variety of reasons brought about these failures, from increased competition, to a lack of cash or even, perhaps, fraudulent practices.

In 2015, around 11 bitcoin firms went belly up. Here's our look at what happened:

GAW Miners

During 2015, GAW Miners fell into deeper and deeper trouble amid growing controversy over its mining operations and failed promises that it would honor a $20 price floor for its own cryptocurrency, paycoin.

Later staff exits and email leaks were the death groans of a company that had always courted controversy, and eventually it faded away mid year with a whimper rather than a bang.

In the months since, GAW has been the target of civil lawsuits from customers seeking to recoup losses, and worse, the US Securities and Exchange Commission (SEC) charged the firm's former CEO, Josh Garza, with the fraudulent sale of unlicensed securities and operation of a Ponzi scheme.

Mining ASIC Technologies

Mining ASICs Technologies (MAT) was declared bankrupt by a Maastricht, Netherlands, judge at the close of last year, after company CEO Marc Coumans filed for bankruptcy.

The firm used a business model that asked people to pay 35% upfront for its SHA-256 miners but when they failed to appear for most customers in September 2014, the word 'scam' started being bandied about on forums.

The firm responded that there was a problem with the air cooling of the chips, and that orders would be sent when resolved.

Bar for a few customers, this never happened and after a tiff with the producer of its chips, the firm eventually declared itself bankrupt, saying calls for refunds had finished it off.

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It is a wonder that any of them still existst

 

Why A Hedge Fund Manager Who Made A Killing From Subprime Is Buying Bitcoin Long before "The Big Short's" Michael Burry was a household name for his insight into the upcoming subprime crisis of 2006-2007, there were many others among them John Paulson, Kyle Bass, and Corriente Advisors' Mark Hart. Just like Bass, Mark is another Texas-based hedge fund manager who correctly predicted, and profited from, the subprime crisis. He is also an expert on China, and in fact, just last month in the aftermath of the recent Chinese devaluation which roiled markets, he said that "China should weaken its currency by more than 50 percent this year."

In fact, it was Hart who (alongside ex-PBOC advisor Yi Yongding) first proposed the idea of the one-off devaluation that promptly afterwards become the conventional expectation for this weekend's G-20 summit in Shangai. To wit:
Hart believes that the Chinese crawling devaluation is an error as it carries with its the latent threat of much more devaluation in the future, thus encouraging even more outflows, which in turn forces China to sell even more reserves, which destabilizes the economy even further, forcing even more devaluation and so on. Instead, a one-off devaluation would allow policy makers to “draw a line in the sand” at a more appropriate level for the yuan, easing pressure on China’s foreign-exchange reserves and removing an incentive for capital outflows, according to Hart, who’s been betting against the currency since at least 2011. He adds that China should devalue before its $3.3 trillion hoard of reserves shrinks much further, he said, because the country can still convince markets it’s acting from a position of strength.

According to Hart, while a devaluation this year would be “jarring” and may initially accelerate capital outflows, it would ultimately put China in a stronger position. He said the country could explain the move by saying it would put the yuan at a level more reflective of market forces and allow the currency to catch up with declines in international peers.

As we said one month ago, "Hart is correct, and China will have to pick one option: either a sharp devaluation, or failing that, debt defaults: the current course of gradual CNY debasement will only results in an acceleration in capital outflows until ultimately China's $3 trillion rainy day fund is whittled away to nothing (and as a reminder, according to some estimate just a little over $1 trillion in it is actually liquid assets)."

And while we explained that Hart's "devaluation" trade consists of buying Yuan puts, according to a recent interview he gave to Raoul Pal RealVision, he has also put another trade on alongside his FX deval: buying bitcoin.

Why bitcoin?

The same reason we gave back on September 2, 2015 when Bitcoin was trading at $215 in a post titled "China Scrambles To Enforce Capital Controls (Which Is Great News For Bitcoin)" and long before the topic of China's capital controls, and their circumvention, became a routine topic of conversation. As we explained simply, with Chinese capital controls increasingly more strict, the local population, which was nearly $25 trillion in deposits in local banks, will rush to transfer these massive amount of savings offshore, and will end up using bitcoin to do it. This is specifically what we said:
... while China is doing everything in its power to not give the impression that it is panicking, the truth is that it is one viral capital outflow report away from an outright scramble to enforce the most draconian capital controls in its history, which - as every Cypriot and Greek knows by now - is a self-defeating exercise and assures an ever accelerating decline in the currency, which authorities are trying to both keep stable while also devaluing at a pace of their choosing. Said pace never quite works out.

So what happens then: well, China's propensity for gold is well-known. We would not be surprised to see a surge of gold imports into China, only instead of going to the traditional Commodity Financing Deals we have written extensively about before, where gold is merely a commodity used to fund domestic carry trades, it ends up in domestic households. However, while gold has historically been the best store of value in history and has outlasted every currency known to man, it is problematic when it comes to transferring funds in and out of a nation - it tends to show up quite distinctly on X-rays.

Which is why we would not be surprised to see another push higher in the value of bitcoin: it was earlier this summer when the digital currency, which can bypass capital controls and national borders with the click of a button, surged on Grexit concerns and fears a Drachma return would crush the savings of an entire nation. Since then, BTC has dropped (in no small part as a result of the previously documented "forking" with Bitcoin XT), however if a few hundred million Chinese decide that the time has come to use bitcoin as the capital controls bypassing currency of choice, and decide to invest even a tiny fraction of the $22 trillion in Chinese deposits in bitcoin (whose total market cap at last check was just over $3 billion), sit back and watch as we witness the second coming of the bitcoin bubble, one which could make the previous all time highs in the digital currency, seems like a low print.

Yes, bitcoin may be slowly but surely leaving the domain of the libertarian fringe, but in exchange it is about to be embraced as the most lucrative and commercial "blockchained" way to capitalize on what may soon become the largest capital outflow in history...

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techmac:
Competition causes reactions like that, and it is good. It was a bubble anyway

Hello sir, it doesn't make me understand about price of Bitcoin that sold by exchanger. for 1 bitcoin its price really expensive.

 
arifin:
Hello sir, it doesn't make me understand about price of Bitcoin that sold by exchanger. for 1 bitcoin its price really expensive.

That was a simple case of demand - and it was used by cons. Now that they made the money (real money) they wanted, they can reinvest it in making us believe that all is OK again

 

Bitcoin is a commodity : that is why it can change its value so wildly. It is not a money

 
eurofreek:
Bitcoin is a commodity : that is why it can change its value so wildly. It is not a money

You are right. It is a game for the rich for now

 

Bitcoin climbed 20% today

Bitcoin rose above $700 for the first time since the Mt Gox disaster

Long LinkedIn, the VIX and Bitcoin today have all been massive trades.

Bitcoin is up 20% and rose above $700 for the first time since Feb 2014.

There's a clear correlation trade shaping up. Whenever there is a threat of capital controls or an inability to get money in or out of a country, Bitcoin climbs.

It's done well since China began to wave the white flag on FX liberalization and, more recently, entrepreneurs in Venezuela are said to be using Bitcoin.

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