Bitcoin’s growth in 2013 has accelerated tremendously, driven largely by economic concerns which bitcoin is uniquely positioned to solve. This has been evidenced so far this year by conditions in Cyprus, China and Argentina, and has highlighted bitcoin’s potential in less developed nations like Kenya as well. All of the countries listed above are known for high inflation rates, strict capital controls, or a combination of both – a scenario that is beginning to unfold in India. This analysis will address India’s current economic climate and the factors that would affect the population’s propensity to adopt bitcoin on a large …
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As the digital currency markets continue to mature and build trade history, we can learn more about market reactions, patterns and influences. Often cited as the digital version of gold – a finite, non-state wealth store – bitcoin may be joined in the world of nouveau analogies by litecoin, which has already become commonly referenced as digital silver. Litecoin (LTC) is nearly identical to bitcoin with a few notable exceptions. Litecoin uses a different proof-of-work algorithm chosen specifically to make mining possible with consumer-grade hardware. Additionally, the LTC protocol targets 2.5 minutes average block times (compared to 10 for BTC) …
Read More →Last month we noted the surprising correlation between USD and BTC. From May 1 through June 20, the two currencies shared a 0.76 correlation, which actually increased to 0.89 when comparing bitcoin with three-day-old USD levels. Since then, markets have reacted to a series of macroeconomic events that not only broke that correlation, but actually reversed it, such that BTC has been inversely tracing USD with remarkable accuracy ever since. Fed Influence May Be Inescapable, Even For Bitcoin In a press conference on June 19, Ben Bernanke said the Fed may begin tapering its asset purchases as early as later …
Read More →Earlier this week, 250 bitcoin enthusiasts, venture capitalists, and entrepreneurs converged in London’s legendary Canary Wharf for Bitcoin London. Of those in attendance, more than 30 were from media outlets including Bloomberg, the Financial Times, the Guardian, Tech Crunch and others, according to Pamir Gelenbe, the conference’s organizer. “Innovation comes from the outside; it takes something from left field to change the system. Eventually the financial services sector will catch up,” Gelenbe told us. Given the innovators, financial professionals and media in attendance, Bitcoin London may have been an important step to that end. Opening the event was an address …
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Jul 4, 2013
Posted
Economics, Featured, News, Trading
Tagged Bitcoin London, gold, London, price, technical, Western Union
Comments 2
As the bitcoin market continues to mature, with more players entering and liquidity growing to support broader uses, the world’s favorite cryptocurrency is beginning to reflect movements of the USD with an astoundingly high correlation. Bitcoin, a new entrant to the forex world, is just beginning to find its place among the world of alternative assets. Many assume that bitcoin, as a decentralized, non-state issued currency, would gain value as inflationary pressures on traditional currencies increase. If that were the case, it would more closely follow existing inflation hedges, most notably gold, but that has not been the case. As …
Read More →At a conference held last week in DC, the European Central Bank presented their opinion of virtual currencies including discussions about bitcoin. On slide 6 of their presentation they made a striking argument: bitcoin does not fulfill any of the three functions of money: Medium of Exchange, Unit of Account, or Store of Value. Most likely, their counterpoints to these three functions relate to the large volatility that bitcoin’s exchange rate has experienced since it’s inception. While it is difficult to refute their exact points since the soundtrack is not included, it does raise an interesting question of how the …
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Jun 18, 2013
Posted
Bitcoin 201, Economics, Featured, Regulatory
Tagged Bitcoin, chain, fiat, gold, price, transaction, USD
Comments 33