A public fund manager who has invested in Facebook, LinkedIn, Amazon and Netflix now also owns shares of a trust backed directly with bitcoin.
New York City-based ARK Funds described the deal as the first time a public fund manager has invested in bitcoin, and a nod to the crypto-currency’s stabilization at today’s price of about $230.
“We’ve been watching it for a long time, not long after Satoshi Nakamoto, who ever he or she is, designed it,” said ARK’s founder and chief investment officer Cathie Wood, during a phone call this afternoon. “We’re looking at something now that’s stabilized.”
Because of its structure as a public fund manager, ARK (Nasdaq: ARKW) isn’t allowed to have property on its portfolio. Since the IRS officially classified bitcoin as property in March 2014, Wood says the Bitcoin Investment Trust, created by New York City-based Grayscale, a subsidiary of the Digital Currency Group, was the best way for it to show their interest in the currency.
“Rather than them purchase bitcoin directly, the way they can purchase shares of Apple and Tesla, they can buy shares in the Bitcoin Investment Trust,” said Michael Sonnenshein, Grayscale’s director of sales, during a phone conversation this morning.
Some will have heard how Bitcoin turned early investors into millionaires, as the price soared from a few US cents to thousands of dollars.
It is up more than 500 per cent in a year and is now worth three times as much as gold.
However, experts warn it is tricky to buy and volatile, so you need to understand what you are getting into.
BITS AND PIECES
Bitcoin is a virtual, paperless currency that exists only on computers.
It was created by anonymous programmers in 2009 and is not backed by any government or regulatory authority.
The currency has a finite supply of 21 million, of which more than 16.5million are in circulation.
Central bankers cannot destroy its value by printing more of it, as they can with paper money.
It first came to public attention after being used for drug transactions on the dark web and was also used by hackers in the recent WannaCry ransomware attack on the NHS. Investors have lost money when online Bitcoin exchanges have been raided by cyber criminals.
However, it is slowly entering the mainstream, as fund managers invest in it and companies accept it as a form of payment. For many, the biggest attraction is as a speculative investment, with the currency being the best performer in 2015 and 2016 and is likely to repeat the feat this year.
A year ago, Bitcoin traded at $580 (£443 then), but this week the price topped $3,787, a rise of 550 per cent. (NOTE THIS IS AN OLD PRICE IT IS NOW WORTH FAR MORE!)
Haven’t heard much about this as Omise is generally an Asia based company. Watching @crypt0 about 5 hours ago announcing on his fantastic video some interesting information about OmiseGo. What’s interesting about this? Well, a McDonalds in Thailand jumped on board to use their software as a means of payment from customers to the McDonalds, to make purchases from McDonalds and then the funds are automatically converted into the currency in which the McDonalds would like to take.
What is OmiseGO OmiseGO uses an Ethereum based platform and it’s basically a platform that allows users to have access to a decentralised network. OmiseGO provides a next gen transfer service, which operates across several currencies and assets through the OmiseGO network connected to Ethereum. What this means for the general public is anyone will be able to complete financial transactions in a completely decentralized and inexpensive way. Basically meaning the world in which we cut out the financial “monopolisers” and the crippling effects they have, is here!
Digital Currency Transfers How They Work Explained
What is a payment transfer system?
It’s a payment method between individuals.
Say you live abroad and you want to transfer some money back home, also known as remittances; or you want to lend some money to your friend who is in a different city, or any other reason, involving transferring money. What do you do? This is when a payment transfer system comes in handy. There are different ways to do this, from a ‘money wiring office’, to your laptop. Of course, you’ll need to provide contact information about yourself and about the person you’re sending money to: names, cell phone number, email address, bank account number and so on.
Although it looks convenient, this process tends to have difficulties.
What are some problems with traditional transfer systems?
Here are the most common:
If you transfer money from one bank account to another bank account it can be pricey, especially depending on the amount of money.
Don’t forget that if you send money to another country, there might be different currencies and different exchange rates, that may result in a different amount of money being delivered to the addressee.
From several minutes to several days, you must wait until the transaction is completed.
“No matter where you are, you can get your money in an instance”. This is a general slogan for every relevant marketing campaign. Does it work in real life? Not always. It may seem impossible for people in developed countries, but it’s quite an issue for many geographical regions. Sometimes there are just a few offices you can get your money from, if any.
You wouldn’t think it’s an issue, but you’d better be careful with federal legislation, as in some countries this type of payment is subject to tax legislation.
How are Blockchain-based transfers better than conventional ones?
Currently, all global currency transfers have quite high commission fees.
Why? For instance, global money transfer systems like MoneyGram or WU have to bear additional transaction costs to maintain offices around the world, due to the significant geographical coverage of their services. The banks, carrying out transfers, also have to pay the costs of the market sub-allocations for conversion. According to a recent World Bank study, this results in the average cost of a transfer being about 5.5 percent of the payment amount (for private clients).
A Blockchain-based transfer system excludes real physical movement of currencies around the world, which allows exceptionally favorable expenses for transactions, speed and maximum reliability of the system’s operation.The use of third-party payment services in the output to the fiat offered by digital currencies exchanges, usually costs the client at least 1.5-2 percent.
Most of the Blockchain services at the moment are focused on solving this issue for corporations, not private individuals. Still, projects like Transmission are devoted to providing a simple way to transfer money in digital currencies for ordinary people.
In other words, how do I benefit?
Here is how.
Digital currency payment systems exclude costly transactions for clients.
They offer a quick currency deposit and withdrawal, with minimum commission (no more than one percent of the transferred sum).
If you make an exchange using the service, it will be done without additional costs for conversion.
The transfer proceeds immediately, without any delays.
If you got this far and are looking for a management team to get you into the Crypto Currency market, and do it profitably, contact us today.
Apply to become an associate today. even if you do not pool with us you can still get some of the quickest trading insights in the new digital currency trading markets,
Minimum buy in is still @ only $100.00 Soon that will go up.
By far one of my favourite human beings on the planet. This brilliant mind has always been one of my top choices to listen to and it was a pleasure to pick his brain and ask him some questions about our direction as a society. From Omisego to Neo, Populous and Veritaseum and the rest of the crypto currency sphere. The bitcoin and blockchain community at large. We end it all off with the cherry of Antarctica, new technologies and the future developments of Koz and freedom media. I hope we get to sit down and do this again soon! It was a treat and a pleasure.
These are MY ideas, and I am presenting them here for entertainment/analysis purposes ONLY, you MUST do YOUR OWN due diligence before investing in ANY CC’s or digital assets; Understand the Risks.
There’s no better person to give us a realistic, unbiased view of this new investing sphere than Rick Rule, the billionaire Chief Executive Officer of Sprott Global Resources. As a long-time advocate of free markets and decentralization from government control, in his recent interview with Crush The Street Rule says that with a $70 billion market cap, and perhaps more importantly the distributed ledger technology that makes it function, Bitcoin and the blockchain are here to stay.
Bitcoin to me is all positive… I’m a consumer of currencies and currencies are a medium of exchange… and the more competing currencies there are the better it is for consumers of currencies… I use U.S. dollars, I use Canadian dollars, I use gold, I use silver, and from time-to-time I use BitCoin.
The more competing currencies, the better the currency has to perform for the consumer.
If you move beyond the discussion of crypto currencies to a discussion of the distributed ledger, that the distributed ledger is perhaps finally the conjunction between information technology and the broader economy… It is the way you to take control of the ownership of assets, the transfer of assets and the title of assets from governments and deliver them back to the market… that’s truly revolutionary.
Thinking like a trader: I had this convesation with my wife last night. Because after making yesterdays video she was like: “hey your running out of bitcoin? But don’t you think its going to be worth 100x some day? Why would you sell so much of your BTC?” She was not thinking like a trader.. I see things differently..Heres the thing, a trader grows his account.. You cannot be only thinking in BTC (or Fiat for that matter)… Even if i run out of BTC, im not out of BTC.. Let me explain:
Lets say you had 1 BTC when it was worth $2000 fiat, and you did nothing.. well today you still only have a 1 BTC balance and its now worth $4,300 Fiat.. So lets say you sell your BTC for $4,300 USTD.. well what do you have? Your account is still worth 1 BTC (or $4,300) its the same.. In trading we can rebuy with one click, so the balances are always interchaingeable .. so your not really out of BTC.. Traders see the pair, all you are trying to do is grow your account size…But i know, It’s hard to get that simple idea straight in your head sometimes.. As an example, yesterday I was selling at 4,400 ..4,500, and then 4,700 (lets call it converting into fiat instead of selling) and today I converted Fiat back into 6 bitcoin (with a nibble) at $4,000 ish and then I sold 2 BTC at 4,350 ish (a few minutes later).. So whats my balance?? well lets just say its higher, whether you calculate that in BTC or Fiat, its much much higher than yesterday.. And what would have been my balance if i did nothing? Lower..
Just because you sell BTC doesnt mean your out of BTC, in order to trade you have to buy and sell. If you only hold, then you only grow when BTC goes up, and you cannot compound your money which Albert Einstein called the eighth wonder of the world…
“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”
Russian cybersecurity firm Kaspersky Lab has discovered malware which hides inside a computer, mines cryptocurrency and sends it to hackers. The virus is spread through social engineering and adware.
Kaspersky Lab has discovered two groups of hackers working in Russia, which have control of 5,000 and 4,000 computers. When installed on a victim’s computer, the malware starts using its hardware like graphic cards to create digital tokens.
“According to analysts, the hacker mining network brings its owners up to $30,000 per month,” the company said.
The most popular currencies are Monero and Zcash; their transactions are difficult to trace due to anonymity.
Kaspersky estimates that the network of 4,000 computers earned over $209,000 in the Monero cryptocurrency. Coinmarketcap values Monero’s market value at $1.7 billion, while Zcash is worth $503 million, making them the 9th and 18th largest digital currencies.
The malware is hard to trace for an ordinary user, who will notice the PC slowing down and heating up, but doesn’t understand why. Users usually download such adware on their own, thinking it’s free software or a key to activate licensed products.
Mining itself is not an illegal process. Moreover, a user can easily install a program and legally use it for mining cryptocurrencies. So, it makes it hard to detect whether a computer was hacked, or its owner voluntarily downloaded the software.
Users on forums have complained that criminals have been using malware to mine cryptocurrencies on victims’ computers for more than two years. They claim Kaspersky Lab reacted only now, as it wants to sell more antivirus software at the peak of popularity of digital money.
Having plunged by the most in 6 months during the US day session, the dollar is continuing to get pounded across AsiaPac with Hong Kong Dollar and Yuan surging. Gold is extending gains, breaking above the spike highs from election night…
The Dollar Index is in free fall…This is the 7th straight down day for the USD Index…
There is not much support below here…
Driven by widespread selling across Asia… The last 3 days have seen the biggest collapse in the dollar since the start of January.
With the Hong Kong Dollar exploding higher (and 12mo forwards signaling expectations of a major collapse in the US dollar, breaking the Hong Kong peg)…
Offshore Yuan is spiking higher against the dollar…
But all Asian currencies are surging against the dollar tonight…
And gold is spiking back above the election night highs…
Did President Trump’s “we don’t need no stinking debt ceiling” decision finally break the back of dollar hegemony?
Or is this the market calling The Fed’s bluff and forcing them to hike rates to defend the dollar – and by doing so losing all data-dependent credibility (whatever is left)?