Bitcoin’s second coming makes Wall Street think again on crypto

After bitcoin fizzled and popped early last year, Wall Street seemed to lose interest. Goldman Sachs went quiet on plans to open a desk trading digital assets as the price of the cryptocurrency plummeted, falling as much as 80 per cent. In October last year JPMorgan Chase chief Jamie Dimon doubled down on his initial scepticism, saying he did not “give a shit” about bitcoin at a conference.

But now that prices for bitcoin and other cryptocurrencies have climbed back up, some senior figures in the financial services industry are thinking again, wondering whether it was the spike or the crash that was the anomaly. Flow Traders, an Amsterdam-based listed trading firm specialising in exchange-traded products, announced in April it was adding cryptocurrencies to its line-up. Last month a group of 50 companies including Jump Trading and DRW — two high-frequency trading houses — and Mike Novogratz’s Galaxy Digital, a crypto merchant bank, formed a group to develop a “deep, efficient and secure” market.

“Over the past two years we have seen evidence building that bitcoin is an uncorrelated asset class so it makes sense to add it to portfolios,” said Marcus Swanepoel, a former Morgan Stanley and Standard Chartered banker now running Luno, a crypto company.

Bitcoin’s trajectory has certainly been eye-catching. Its price has more than doubled in two months, finishing the week around $11,800. This is some way off the highs of late 2017, but enthusiasts say the rally will continue.

Chief among the reasons offered by bulls are Facebook’s recent announcement that it will launch a new digital currency next year — which came a few months after JPMorgan created its own “coin” for payments — and a sharp turn in monetary policy from the US central bank. Along with dovish noises from the European Central Bank and the Bank of Japan, that has helped drive the value of negative-yielding debt around the world to about $12.7tn, according to data tallied by Bloomberg and Barclays. In that context, yield-less gold looks appealing — as does bitcoin.

“There is a lot of demand coming from Asia and Japan where bitcoin represents a wave of hope against a deflationary monetary environment,” said David Mercer, chief executive of LMAX Exchange, a currency-trading platform with about $400m a day in crypto volumes, which started offering cryptocurrencies last year. “It’s become a safe haven of the digital space.”

While demand for crypto remains driven by retail investors, particularly in Asia, institutional practitioners are increasingly getting involved, drawn by fat spreads and increasing volumes. According to Mr Mercer, six of the largest high-frequency traders on LMAX’s fiat-currency platform are active in the crypto market as well.

In public, big banks remain wary, although a head of electronic trading at a large US lender said traders would jump at the opportunity to trade crypto — a market with a total capitalisation of $336bn — if given the chance. Jan Strømme, a veteran of currency markets, set up a crypto-focused trading firm Alphaplate in August. He says young programmers and quantitative traders are shunning careers at banks to work at crypto-focused companies as interest from institutional traders picks up.

Graham Rodford, founder and chief executive of Archax, another crypto platform, started trading bitcoin six years ago as a side project from his day job as head of compliance at Omni Partners, a London-based hedge fund. A former head of operations at HSBC, he is betting that in the future hedge funds will do their fundraising through platforms such as Archax, and will trade all asset classes — including stock and bonds — in digital form.

“We have come a long way in terms of the market structure already with skilled professionals from the traditional world moving into this new emerging world and bringing with them a wealth of experience,” he said.

Arch critic Nouriel Roubini, who described crypto in May as “the mother and father of all bubbles”, is engaging in debate. Next week he is due to go head to head in Taiwan with Arthur Hayes, the founder of crypto exchange BitMex, and a former equities trader at Citi and Deutsche Bank, in an event billed as “the Tangle in Taipei”.

To Mr Swanepoel, the world is slowly moving towards a new monetary system. He believes his firm will soon be competing with the biggest banks, as the underpinnings of the financial system undergo a radical shift.

“The holy grail of the internet is to be able to move value peer-to-peer safely and securely and we can do this now with blockchain technology,” he said. “We just don’t yet know if it’s money or bitcoin or something else we should be moving around.”

Mr Mercer agrees. “Today the most efficient way to move money to Australia is to get on a plane and fly there with a suitcase,” he said. “This is clearly not going to last if you believe in blockchain technology.”

Eva Szalay Financial Times

Alan Zibluk Markethive Founding Member

TITLE:  HOW TO HAVE GOOD THOUGHTS TO PROSPER YOU? 

Good Thoughts Prosper You, Bad Thoughts Destroy You.

THE HEART’S ELECTRICAL FIELD IS 60 TIMES GREATER THAN THE BRAIN.
THE HEART’S MAGNETIC FIELD IS 5000 TIMES GREATER THAN THE BRAIN.

EVERY BEAT OF YOUR HEART SENDS A MESSAGE 
TO EVERY CELL IN YOUR BODY.

GOOD OR BAD, DEPENDS ON YOUR THOUGHTS & FEELINGS.

SAY THIS PRAYER, AS OFTEN AS NEEDED:

IN THE NAME OF JESUS CHRIST, I COMMAND MY HEART AND MIND TO ONLY THINK GOOD THOUGHTS AND FEEL HOLY FEELINGS.

For the 1 Minute Powerful Prayer, please visit:  https://prayer777.com

Alan Zibluk Markethive Founding Member

How courageous are you?

Written by Jesse Bradley on 11/06/2019

Series: Weekly Devotional

Tags: Fear, Strength, Courage

This Book of the Law shall not depart from your mouth, but you shall meditate on it day and night, so that you may be careful to do according to all that is written in it. For then you will make your way prosperous, and then you will have good success. Have I not commanded you? Be strong and courageous. Do not be frightened, and do not be dismayed, for the Lord your God is with you wherever you go.

Joshua 1:8-9

How courageous are you? Are you winning the battle with fear? How do you respond when God leads you to a role that is beyond what you can do in your own strength?

When God gives the vision, He also gives the provision. In the Bible, God has a track record of challenging men to fully rely on Him. Walking by faith means dropping our pride and finding supernatural resources. Joshua and Gideon are two men who learned how to accomplish great victories for the Lord. Let's learn from their experiences as we grow in our faith and bring glory to Jesus today.

Your Assignment

God gives an assignment to every man. Have you found out what God has called you to do in this season of your life? Your assignment probably has many parts. Loving your family, serving your church, using your spiritual gifts to build up the body of Christ, giving generously, reaching the nations, sharing your testimony, praying for your neighbors, being His ambassador in the marketplace, raising children, tackling injustice, and inviting people into your home are some examples of ways God asks us to expand His kingdom. When God guides you, it is always for His glory and our good. 

Joshua was given an assignment from heaven to lead God's people into the promised land (Deuteronomy 34:1-9). Following an amazing leader like Moses, uniting and inspiring about 2 million people, miraculously crossing the Jordan River during flood season, surviving fierce battles, and staying close with God through countless trials was difficult. In addition, no one had ever done this before. Being the first one to do something or accomplish what other people failed to do can be intimidating. Joshua also had to form a new team after the old leaders died in the wilderness. Can you imagine having his responsibility? Can you relate to any elements of his mission? 

Gideon was very surprised that God chose him to rescue people. He was careful about accepting his assignment. He felt like God selected the wrong person. The nation was in danger. Spiritually, people had turned away from God often. They wandered away from God. There were many military threats from other countries, and invasions were devastating. Would you want Gideon's assignment? Where would you find hope to overcome all of your insecurities? Is your walk with God solid enough to bring healing to a nation? 

Your excuses

Do you come up with excuses in your own mind? What do you tell yourself? Is fear trying to steal your peace and threaten your assignment? How would you live for Jesus if fear was not a factor?

Wrestling with worry and insecurities are common. In the Bible, men like Joshua, David, Paul, Moses and Abraham are very honest about their struggles. Are you trying to dodge or hide from God's calling on your life?

Gideon had a long list of reasons why he should not be faithful with His assignment. (Judges 6:1-18) He wanted more reassurance from God and more miraculous signs to confirm his calling. We should not put God to the test. Being demanding when God has made it clear in His Word is unhealthy. Gideon was discouraged about the present circumstances, but God made it clear He was with Gideon. Gideon felt like his family was dysfunctional and he was the weakest one in his clan. God listened to Gideon but then said that Gideon was a mighty warrior. God's view of Gideon was far more encouraging than how Gideon saw himself. Sometimes we need to shift and simply receive and agree with God's perspective. It's the only way to overcome our lame and stubborn excuses. Are you willing to be in alignment with God's Word instead of remaining loyal to cowardly excuses? God wants to bring you a new courage that is the same power that raised Jesus from the dead. (Ephesians 1:15-23)

Your Strength

Joshua learned to stay in the presence of God. He stayed in the Tent of Meeting to worship, to listen and to receive God's strength (Exodus 33:9-11). Joshua had a mentor named Moses, and he would watch as Moses communicated with God. Do you have a mentor in your life who will help you go deeper with God? Are you learning how to draw near to God and find encouragement in Him?

Joshua won the battle in his mind. He did this by meditating on God's Word. (Joshua 1:6-7) The most intense spiritual battle is often in your head. The devil tries to plant lies and discouragement into your thinking. (John 8:44) The Holy Spirit will help you. He is stronger than the darkness in this world. The Spirit and the Scripture are always in alignment. Read and memorize the Bible because it is your sword in the battle against darkness. Remember to live out what you learn. Studying the Bible is not merely an academic exercise. God moves mightily when you are obedient with application, too. (Ezra 7:10) God's Word is truth and builds up your courage. How much time are you spending in Scripture during the week? How can you increase your intake of God's Word?

Gideon learned to accomplish victories God's way. He defeated the Midianites with lanterns and trumpets. (Judges 7:19-25) What kind of a military strategy is that? God's wisdom is not always the popular, likely, or logical way. Many people hear a clear assignment from God but then try to achieve the results with their own plan. That is a recipe for disaster and heartache. It is very important to rely on God for the “what” and the “how” of the mission. Good intentions and good effort alone will not be enough. You need heavenly wisdom and insights (James 1:5).

A Joyful Reset

Today can be the start of a new season in your life. There is new hope and power through Jesus. God is with you and goes ahead of you. Start this new adventure in your life by putting your trust in Jesus as the savior and leader of your life. You can not do life or eternity without Him. As you follow Jesus, make some key shifts in your life. Grow in your faith by spending more time in prayer, including listening to God. Also, find other courageous Christians (like Joshua and Gideon were) in a healthy church and serve Jesus together. Lastly, devote time to reading and applying the Bible. It is your playbook, and the results will be amazing when you honor God's Word. You are a courageous man in the Lord. Don't settle for anything less than your calling. The Holy Spirit will write the script and empower you to accomplish the assignment. (Acts 1:8) Many lives will be transformed, including yours because God is trustworthy and good.

Pray this week:

Lord, I want to be courageous for you like Joshua, and faithful to obey you like Gideon. Forgive me when I only rely on my own strength. Please lead me with your Word, prayer, the power of your Holy Spirit and fellowship with others who courageously follow you.  Amen.

You cannot do life or eternity without Jesus.  What will you start doing today to know him better and trust him more? 

Alan Zibluk Markethive Founding Member

Bitcoin Passes $11,000 Mark, Nears 15-Month High on Facebook Libra, Other News

Bitcoin is back, doubling in value in just two months time and raising the prospect of another speculative bubble.

Bitcoin is in the news again, jumping passing the $11,000 mark this weekend and approaching the highest value the cryptocurrency has seen in 15-months after the announcement of Facebook's Libra quasi-cryptocurrency and other market forces.

Cryptocurrencies Bounce Back After Initial Post-Bubble Drop

Bitcoin hit a high of $11,307.69 Sunday evening, posting a more than 20% gain in just one week, according to a new report by CNBC. Prices drew back a bit on Monday, wavering above and below the $11,000 mark all afternoon, priced around $11,070 as of Monday evening.

RELATED: PEOPLE ARE MORTGAGING THEIR HOMES TO GET IN ON BITCOIN ACTION

The sudden jump for the world's first and largest cryptocurrency has a lot to do with the announcement last week of Facebook's 'Libra' digital currency, which reintroduced cryptocurrencies to public consciousness a year and a half after they burst onto the scene with reports of wild, 1000% gains and overnight Bitcoin millionaires. Those reports, in turn, drove further speculation in the cryptocurrency markets, creating a bubble that popped soon after as sell-offs at the height of the craze drove prices into a tailspin as speculators rushed to realize gains they had made on Bitcoin's rise.

After a year and a half hovering in the three-to-five-thousand range, Bitcoin's price is seeing some real action again, doubling in value in just under two months and nearly quadrupling in value just this last year.

There are several reasons for the rise in value, according to analysts. Some say that the rise is due to Bitcoin being seen more as a "safe-haven" asset, rather than a speculative investment.

"There’s a broader understanding of crypto as an asset class,” Circle CEO Jeremy Allaire told CNBC's “Squawk Box” program on Monday. “Anticipation that next generation of blockchains, including what we heard about last week with Libra Association, really indicates what is ultimately going to be a massive mainstream phenomenon touching billions of people."

Forbes points out that much of the current rise in Bitcoin's value may be tied to events in India. Prime Minister Narendra Modi's monetary policy was criticized for appearing to cause chaos in the country in 2016 when his government banned high-value bank notes and a more recent crackdown on internet services like Telegram and Reddit turn people's attention to more decentralized internet services like cryptocurrencies.

The Indian government has proposed banning cryptocurrencies in the country, which could actually be driving more people to cryptocurrencies in the country. In India, Bitcoin is currently trading at a $500 premium.

Facebook's announcement that it will be participating in the Libra Association's digital cryptocurrency–though some cryptocurrency purists have argued that Libra doesn't qualify as a true cryptocurrency since it is not censorship-resistant–clearly contributed to Bitcoin's sudden spike in value as well. Putting its industrial weight behind the principle of cryptocurrencies helps shore up doubts about the value of cryptocurrencies as an asset and may be giving investors some level of reassurance that cryptocurrencies aren't just some dodgy, fake Internet money.

Still, the sudden price spike in Bitcoin can't help but recall its infamous surge in the fall of 2017 and its spectacular collapse in value beginning in January of 2018.

Source: John Loeffler for Interesting Engineering, via BusinessInsider

The rise and fall and rise of Bitcoin value raise a lot of questions about the cryptocurrency. The fundamentals of the currency haven't changed, so it's understandable that many may be looking at its sudden price rise as more evidence that cryptocurrencies are unreliable speculative investments.

On December 13 2016, Bitcoin was selling at $784.30. The price started building quickly over 2017, reaching $3,433 on September 15 2017, after which it soared over the next three months, closing at its all-time high on December 17 2017, Bitcoin was selling at $19,783.21 or more than 2500% its value just 12 months earlier.

The bottom started falling out shortly after that as speculative investors sought to realize their gains, cutting more than $8,000 off its value in just over a month, closing at $11,553.39 on January 19, 2018. The party now most definitely over, Bitcoin's value fell again by close to half, closing at $6,821 on April 1, 2018, eventually reaching its lowest price since the boom almost exactly one year later, closing at $3,254.78 on December 16, 2018.

Since then, it had spent the first quarter hovering in the three-to-four-thousand range, jumping to nearly $5,000 in the beginning of April, where it hovered until the beginning of May when it started to climb again. Since then, it has doubled in value in just under two months.

Is this the start of another round of speculator-driven investment that will collapse just as soon as the last time around? It could, it has happened before after all, and there's nothing about Bitcoin this time around that's all that different than last time. Facebook's entry into the market for cryptocurrencies does shake things up, however, adding a certain about of industrial strength to cryptocurrency that Bitcoin and others didn't enjoy last time around. But major investment banks with more financial industry savvy than Facebook have also been involved in expanding cryptocurrency portfolios, and this hasn't driven sudden spikes in price.

What makes Facebook's involvement in cryptocurrencies more valuable than Goldman Sachs' isn't clear at all. In fact, Facebook's involvement could easily be seen as a negative, given that Facebook is currently under an enormous amount of scrutiny from regulators in both the US and Europe over its privacy practices and issues with its user data.

If you had a stake in cryptocurrencies, probably the last thing you'd want is for Facebook to get involved and muddy-up the crypto-waters. Cryptocurrencies already face enough scrutiny from world governments, hitching their wagon to Facebook as well only makes that problem worse.

Regardless, it remains to be seen if these valuations will last. If past performance is any guide, then we should know in about a month or two as people will either be lamenting that they didn't get in on this whole Bitcoin thing when they had the chance, or they'll be shaking their head at the latest round of poor saps who took out loans to go all in on Bitcoin the day it started collapsing in price.

By John Loeffler

Alan Zibluk Markethive Founding Member