Jeff Garzik helped contribute to the underlying code of bitcoin and is now coming to market with Metronome; "We've really been beating this up on the economic-model side, the engineering side, the legal and tax side," said Garzik, who serves as CEO of Bloq, to American Banker; Metronome does not have it’s own blockchain and has the ability to jump from one blockchain to another; the new cryptocurrency could be appealing to banks because of the flexibility and they are looking to launch in December. Source.
The UK’s Financial Conduct Authority and Cyprus’s CySEC have issued warnings to retail traders on contracts for difference based on cryptocurrencies; CFD trading based on the digital currencies has started to become popular with the volatility in bitcoin; regulators are worried that retail investors will suffer significant losses and are looking to limit leverage as a result; this continues a worldwide trend by regulators as they get a handle on the growing crypto asset class. Source.
According to the WSJ, Goldman Sachs is considering a new trading operation dedicated to digital currencies; a spokeswoman for Goldman stated, “In response to client interest in digital currencies, we are exploring how best to serve them in this space.”; several banks have been exploring the use of blockchain technology; Jamie Dimon, chief executive of JP Morgan Chase recently spoke out against bitcoin calling it a fraud. Source
Morgan Stanley CEO James Gorman said he thinks bitcoin is “certainly something more than just a fad,” according to a Bloomberg report; he also stated that the concept of anonymous currency is interesting because of the privacy it provides; while he has yet to invest in the technology he does see more regulatory control coming soon. Source.
According to UK research firm Autonomous NEXT there are now 68 crypto hedge funds which is a significant jump since the start of the year; while calling themselves hedge funds many of these new entities are not structured like a typical hedge fund and they don't have institutional backing; as the interest in cryptocurrencies grows, the market will continue seeing new entrants trying to capitalize on the rising value. Source.
One former trader discusses his foray into bitcoin; in a Forbes article he shares how he was wrong to dismiss bitcoin initially and why bitcoin matters more than the blockchain. Source
Christine Lagarde, the head of the International Monetary Fund, told CNBC that the price of bitcoin was too high but that virtual currencies should be taken seriously; “Not so long ago, some experts argued that personal computers would never be adopted, and that tablets would only be used as expensive coffee trays," she said. "So I think it may not be wise to dismiss virtual currencies.”; the interview also touches on the recent regulatory trend to crackdown on the new currencies. Source.
The use cases of blockchain technology has increased significantly in 2017; Business Insider looks at how the technology behind bitcoin is being used in international payments, capital markets, trade finance, regulation, money laundering, insurance and peer to peer transaction; they also look at other industries like healthcare, real estate, media, energy and more. Source.
Fred Wilson is urging investors to diversify their bitcoin assets before the crash comes; while he does not offer a timeframe for when this might occur he does think diversification will protect those who are heavily invested; he is a believer in the crypto markets in general and thinks they add value to a portfolio. Source.
Chinese regulators have been cracking down on bitcoin recently but traders have found a workaround; traders can use the messaging app WeChat to buy and sell coins; users are not sure how long this will last as the government is keen to shut down as much as they can; traders do believe they can stay ahead of the government by moving from app to app. Source.