Goldman Sachs Investment Strategy Group: ‘Crypto Mania’ a Risk to Stable 2018 Outlook

Goldman Sachs Investment Strategy Group: ‘Crypto Mania’ a Risk to Stable 2018 Outlook

Bitcoin (BTC) and “unsteady cryptocurrency mania” are the one of six factors that threaten Goldman Sachs 2018 market outlook, according to a July 2018 report by the Goldman Sachs Investment Strategy Group. The report entitled “(Un)Steady as She Goes,” highlights “cryptocurrency mania” as one of several factors that could affect their initial market outlook for this year.  Other factors listed included terrorism, the rise of populism, rising geopolitical tensions, and an increasing threat of cyberattacks. The investment bank expects cryptocurrency markets to “further [decline] in the future given our view that these cryptocurrencies do not fulfill any of the three traditional roles of currency…” According to Goldman Sachs, crypto is “neither a medium of exchange, nor a unit of measurement, nor a store of value.” While the adjusted outlook lists cryptocurrency instability as a possible risk factor, it also states that “we continue to believe that such declines will not negatively impact the performance of broader financial assets, because cryptocurrencies represent just 0.3 percent of world GDP as of mid-2018.” The report adds that cryptocurrencies “would not retain value in their current incarnation.” Bitcoin and Ether Price Indexes. Source: Goldman Sachs Investment Strategy Group In a previous report in January, the group listed “cryptocurrency mania” as a factor that caused “higher levels of investor unease,” claiming that the sharp rise in Bitcoin’s price “has pushed it into bubble territory.” At that time, Goldman Sachs refrained from making a forecast on crypto prices, claiming that even if Bitcoin’s price would “double or triple,” the company still does not believe it will retain its value in the long term. While Goldman Sachs’ skeptical stance on crypto “remains intact,” the investment bank’s CEO Lloyd Blankfein has suggested that the adoption of crypto like Bitcoin could happen in a similar way as that of paper money, which replaced gold and silver coins. In an interview in June, Blankfein stated that it is “too arrogant” to argue that crypto cannot be adopted on a large scale only because it is “uncomfortable” or “unfamiliar.” The company’s COO David Solomon claimed that Goldman Sachs is exploring crypto trading derivatives, in a move to assist clients in such derivatives as Bitcoin futures and to “evolve its business and adapt to the environment.”

Report: Mood About Crypto Markets Changes Two Months After Trends

Report: Mood About Crypto Markets Changes Two Months After Trends

Markets and Prices It takes about two months for the public sentiment to adjust to new trends in the cryptocurrency markets. That’s according to a recently published report whose authors have examined the changes in the opinions of thousands of active followers of crypto markets over a period of nine months. They found that the collective mood can be bullish long after a downward trend has started.  Also read: Boerse Stuttgart to Host Crypto Trading and Coin Offerings Optimistic Mood Persists Despite Decline in Prices Investors, traders and market watchers need two months to adjust to new long-term trends in the cryptocurrency markets, a study conducted by the fintech company Cindicator has revealed. For example, one of the key findings is that in January and February of this year the collective mood was still bullish and most participants were forecasting growth, despite a clear downward trend. Sentiments changed in March after the total capitalization had already fallen below $300 billion during the previous month. The “Collective Crypto Mood Swings” report is based on data from over 111,000 users of Cindicator’s mobile and web applications that allow them to make daily forecasts about a range of digital and traditional assets. They are asked almost 200 questions every month about the likelihood of certain events and are granted points for correct predictions but lose points in case of incorrect answers. At the end of each month, the “analysts” are rewarded in ETH if they have earned at least 1 point. The survey covers the nine-month period between September 2017 and May 2018. The company also claims that 5,000 traders and investors are using indicators created by combining collective forecasts based on the opinions of these subscribers who come from more than 135 countries and are active followers of crypto markets from different age groups and backgrounds. Their inputs are enhanced by AI using machine learning algorithms and a neural network to produce predictions with high accuracy. According to the authors, the expectations regarding crypto markets change similarly to those about other asset classes. It took investors 60 to 100 days on average to adapt to a new long-term trend in the markets of the different assets they were asked about. The researchers also found that the higher…

Coinbase is coming back to Wyoming

Coinbase is coming back to Wyoming

Today, we’re happy to report that we have renewed our money transmitter license in Wyoming. That means our Wyoming customers can once again use Coinbase products — particularly Coinbase Consumer — to buy, sell and use cryptocurrencies. We believe this action by Wyoming will spur innovation and economic activity for individuals, families and communities across the state. Coinbase welcomed the opportunity to work with Wyoming House of Representatives Majority Floor Leader David Miller, State Senator Eli Bebout, members of the Blockchain Task Force, and their colleagues to find a solution that allows cryptocurrency custodians and exchanges to reestablish operations. We are also grateful for the assistance of Commissioner Forkner, Deputy Commissioner Mulberry, along with the examiners and staff from the Wyoming Division of Banking in their prompt approval of our money transmitter application. Regulators and legislators can work together to foster innovation by either licensing cryptocurrency money transmissions or exempting cryptocurrency from money transmission laws. The leadership and partnership between the state legislature and Governor Matt Meade allowed for this new legislation to be signed into law, under which cryptocurrency companies in Wyoming are no longer required to double reserve the assets of state residents. Now Coinbase and other compliant, regulated cryptocurrency companies can serve Wyoming customers in the same way we serve customers from nearly every other state. We are encouraged by this positive transition for Wyoming residents and businesses to once again enjoy the enhanced innovation, economic activity and social benefits of this new technology. We aim to be the most trusted cryptocurrency brand in the space, and as part of that, we seek excellence in compliance and advocate for common-sense policies that allow for innovation. We will continue collaborating with legislators and regulators across the U.S. and worldwide as we work to create open financial system for the world. Wyoming customers should have access to their accounts, and to the extent any funds (USD or cryptocurrency) were stored in their accounts, they will have access to those funds. If any Wyoming resident is unable to access their accounts or withdraw funds, we encourage them to contact our customer support team to have access restored.

Coinbase Custody is exploring a range of new assets

Coinbase Custody is exploring a range of new assets

These assets are only being considered by Custody at this time, and this announcement has no bearing on trading-based products. *assets are roughly ordered by market cap and typeCoinbase Custody is exploring the addition of many existing and forthcoming crypto assets for storage only, and will be working to add them as quickly and safely as possible. At this time, we have not yet considered these assets for trading. We are making this announcement internally at Coinbase and to the public at the same time to remain transparent with our customers about support for future assets. Coinbase Custody is a custodial service for institutional clients optimized for storing large amounts of cryptocurrency in a highly secure way. As we’ve stated before, Coinbase Custody will likely support more assets than those available to trade through other Coinbase products. Asset additions to Coinbase Custody have no bearing on whether they will be added to other Coinbase products. Asset additions for trading must pass our Digital Asset Framework. As part of the exploratory process, customers may see public-facing APIs and other signs that we are conducting engineering work to support these assets. While we cannot commit to when or whether these assets will become available on Coinbase Custody, we will provide updates to our customers about the process and what they can expect via our Twitter account. In addition to ERC20 tokens, here is the full list of assets that Coinbase Custody is exploring:

Why design is the killer app for crypto

Why design is the killer app for crypto

When I started at Coinbase a year ago, it quickly became clear that there are a thousand big problems to solve in crypto — and very few of them had been considered by a designer. I shared this thought with one of my design heroes, John Maeda. Where should I begin? He looked at me thoughtfully and said, “It sounds like what you need is a design movement.” Within a few weeks, I could tell: he was right. Lesson From the Past: Road Signs in England To start talking about why design matters in crypto, let’s shift back for a moment to the 1930s. Back then, this is what most road signs in England looked like: dense word layout, complicated symbols, and a lot of information. This worked when the top speed of a car was 30mph. Road signs from 1930s-50s (Source: Hulton Archive/Getty Images)When we got to the 1950s, the top speed of a car jumped to 75 mph and highways were appearing across the country, but the signs had not changed. Crashes were frequent and roads were dangerous — there were even protests petitioning to add speed limits to roads. The speed of automobiles was a technology that was literally moving faster than design. A design movement — the creation of something that didn’t exist before — was needed. Creating a New System The task to create a road signage system for this new fast-paced world fell upon two designers, Margaret Calvert and Jock Kinneir. To define their goal for this project, they posed two simple questions: What do you need to know while traveling at high speeds? At what distance do you need to know it? This was new territory at the time. Calvert said, “It required completely radical thinking. The information wasn’t there in terms of reading distance, clarity, and letter spaces.” As someone at the start of a similarly large and foreign design challenge, I find it refreshing to learn about the rigor they applied to their process. Calvert and Kinneir spent years testing for legibility in all different conditions. They would create prototype signs and prop them up against trees to determine the most effective background colors and reading distances. They would then drive past their prototypes at 60mph. At night. In the rain. When safety is concerned, all edge cases…

Coinbase Custody Considers Addition of 37 New Assets Including XRP, EOS and XMR

Coinbase Custody Considers Addition of 37 New Assets Including XRP, EOS and XMR

San Francisco-based exchange and wallet service Coinbase announced today, Aug. 3 that it is exploring the addition of 40 new assets to its custodial service, Coinbase Custody. The blog post stresses that the crypto assets may be added “for storage only,” and that Coinbase will add them “as quickly and safely as possible.” Coinbase states that they are not currently considering the assets for trading. According to the post: “We are making this announcement internally at Coinbase and to the public at the same time to remain transparent with our customers about support for future assets.” Among the new assets being considered for storage are Ripple (XRP), EOS, Monero (XMR), VeChain (VEN), Cardano (ADA), Bitcoin Gold (BTG), and Telegram. Coinbase noted that the addition of an asset to Coinbase Custody is not indicative of whether it will be added to other Coinbase products. It also states that assets under consideration for trading must pass the GDAX Digital Asset Framework. The exchange states that customers may see public-facing APIs and other indicators that Coinbase is in the process of adding support for new digital assets. Coinbase “…cannot commit to when or whether these assets will become available on Coinbase Custody, we will provide updates to our customers about the process and what they can expect…” Coinbase Custody launched on July 2 of this year, aiming to address the “number one” concern of institutional investors, namely, security. The new service purportedly utilizes a range of security measures including “on-chain segregation of crypto assets,” “offline, multi-sig and geographically distributed transaction protection” and “robust cold storage auditing and reporting.” The company also plans to add “secure, segregated hot wallets.” The recently launched custodial service is also secured through an SEC-compliant and FINRA-member independent broker-dealer, Electronic Transaction Clearing(ETC).

First Crypto Firm IPO on London Stock Exchange Raises $32.5 Million

First Crypto Firm IPO on London Stock Exchange Raises $32.5 Million

A crypto mining company has raised £25 million (about $32.5 million) through an IPO on the London Stock Exchange (LSE).  U.K.-based Argo Mining (ticker: ARB), which provides “accessible” crypto mining via a subscription service, is the first crypto company to be listed on the LSE. The company raised £5 million (about $6.5 million) more than its initial goal of £20 million through the IPO.  Argo kicked off on the exchange with about 156 million shares accounting for 53.2% of its issued shared capital, according to a company document. Shares were priced at 16 pence, giving the business a total market valuation of £47 million pounds (about $61.2 million). “Argo’s admission to the London main market is a major step in the company’s development and will put us in a strong position to execute our long-term growth strategy,” executive chairman Jonathan Bixby said in the document. “We are delighted with the strong response from investors which will enable us to grow our business in multiple jurisdictions.” The company won approval from the UK Listing Authority in May to be listed on the exchange, and subsequently released its crypto mining subscription service in June. According to its website, Argo offers consumers three packages differentiated by the capacity of the mining power provided. BTG, ETH, ZEC and ETC are currently supported. All of its packages are sold out. Bixby told the Financial Times around the time of the release that Argo wants to be “the Amazon Web Services of crypto.” “More than 90 percent of crypto mining is done by elites on industrial scale because it is technically very difficult to do,” Bixby was quoted as saying. “It is incredibly expensive to buy, up front, the hardware you need at $5,000 a machine.” Several other mining companies in the space are also considering IPOs. As previously reported by CoinDesk, market leader Bitmain is rumored to be conducting a pre-IPO funding round and to be considering going public. Two other China-based mining hardware makers, Canaan Creative and Ebang Communication have both filed IPO applications with the Hong Kong Stock Exchange. London Stock Exchange image via Shutterstock The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent…

High Times Becomes the First IPO to Accept Cryptocurrencies

High Times Becomes the First IPO to Accept Cryptocurrencies

News On Thursday, the well-known cannabis culture brand and publication High Times announced it’s holding an initial public offering (IPO) and that it will be the first regulated A+ stock offering to accept cryptocurrencies. Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space High Times Takes Another Step Into the Future by Accepting Cryptocurrencies for its IPO The firm High Times is a popular cannabis-focused monthly magazine that was founded in 1974. The publication founded by Tom Forcade reports on the marijuana counterculture and the legalization of cannabis. On August 2, 2018, the legacy company announced it is holding an IPO so individuals can invest in the firm by buying shares. In an unusual twist, the firm has also revealed it is the first A+ stock offering to accept bitcoin core (BTC), and ethereum (ETH). According to High Times, the firm filed its Reg. A report which detailed “$29 million in a reduction of negative equity, significant decreases in operating losses, and a debt reduction — with the U.S. Securities & Exchange Commission.”  High Times CEO Adam Levin believes adding cryptocurrency acceptance will allow a bigger audience to participate in the IPO. “High Times has been at the forefront of popular culture for more than four decades,” Levin explained during the announcement. Now we’re taking another step into the future, not only as one of the first cannabis-related brands to go public on the Nasdaq but also as the first to allow bitcoin and ethereum as part of our public capital raise. High Times has been reporting on cannabis culture since 1974. It will be the first US company to accept cryptocurrencies for its IPO. No Initial Coin Offering But Including Crypto Investors Investors can purchase shares at $11 a piece at the website Hightimesinvestor.com, and the company says with the firm’s strong online presence many will be interested in doing so. Furthermore, High Times has been trending a lot higher these days, as the US and other countries worldwide have been more lenient and even legalizing marijuana use. High Times says the publication is an “important beacon in the legalization activism game.” Levin details that they didn’t believe in utilizing the new crowdfunding process called initial coin offerings (ICO), but felt they needed to…

Final Testing for ETC Support on Coinbase

Final Testing for ETC Support on Coinbase

Coinbase Pro will be open for inbound transfers of ETC on Tuesday, August 7 Today, our engineering team is beginning final testing of support for Ethereum Classic (ETC) on Coinbase. We are making this announcement consistent with our process for adding new assets. We expect final testing to be completed by Tuesday, August 7, at which point we will announce that we’re ready to accept inbound transfers of ETC. We intend to allow 24–48 hours of inbound transfers through Coinbase Pro and Coinbase Prime before enabling trading. You can read more about Coinbase support for Ethereum Classic in our June 12 blog post. What ETC support means for our products Coinbase Custody — the Custody team is planning to add support for inbound transfers and withdrawals of ETC. Coinbase Markets — the Markets team is planning to add trading support for ETC. We intend to allow 24–48 hours of transfers through Pro/Prime before opening the markets. In accordance with our Trading Rules, all ETC books will open in post-only for a minimum of 10 mins. Once sufficient liquidity is established, trading will then be enabled on Pro and Prime. Coinbase Pro — the Pro team is planning to add trading support for ETC. Note that customers who previously had an Ethereum Classic balance on the platform as a result of the 2016 Ethereum hard fork and did not elect to withdraw their funds prior to January 2017 will receive a corresponding Ethereum Classic credit on their Pro account. Coinbase Prime — the Prime team is planning to add trading support for ETC. Note that customers who previously had an Ethereum Classic balance on the platform as a result of the 2016 Ethereum hard fork and did not elect to withdraw their funds prior to January 2017 will receive a corresponding Ethereum Classic credit. Coinbase Asset Management — any asset listed on Coinbase Markets will be added to Coinbase Index in accordance with the Coinbase Index methodology. Coinbase Index Fund will rebalance to include ETC. Coinbase Consumer — per our previous guidance, Coinbase Consumer will list assets only after they are listed on Coinbase Pro and Prime. We plan to add support for ETC on Coinbase Consumer when sufficient liquidity is established. We expect this to occur approximately 1–2 weeks after trading begins on Pro and Prime. Ethereum was not…

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, TRON: Price Analysis, August 03

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, TRON: Price Analysis, August 03

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision. The market data is provided by the HitBTC exchange. The total market capitalization of cryptocurrencies has dived to about $266 billion from above $300 billion on July 27. Such price swings are a common phenomenon on the cryptocurrency market. However, investment bank UBS believes that instability is a major hindrance to Bitcoin being considered as money. Robert Sluymer, head of technical strategy at Fundstrat said to CNBC that if Bitcoin fails to hold the $7,400 mark, a deeper correction to the $6,000 range is possible. Due to the highly volatile nature of cryptocurrencies, using leverage can be a dangerous decision. An unidentified futures trader on the OKEx crypto exchange has recently found this out the hard way, when his long position netted a massive loss, which will now have to be partially compensated by their counterparties. While without leverage this is a normal trading loss, with leverage this can become unmanageable and result in bankruptcies. Therefore, we always advise our readers to take smaller positions when buying closer to the lows, in anticipation of a change in trend, so that a small loss doesn’t dent the portfolio. Larger positions can be initiated when the crypto markets are in a bull phase. Let’s look at the charts to identify whether the path of least resistance is up or down. BTC/USD Bitcoin dipped to an intraday low of $7,288.97 today, triggering our recommended stop loss at $7,400. The bulls have defended the support at $7,250 and have not allowed the price to dip below the downtrend line of the descending triangle, which is a positive sign. Currently, the 20-day EMA is flat and the 50-day SMA is turning up. There is a possibility that the cryptocurrency will trade inside a descending channel for a few days and then break out to the upside. In such a case, we can expect the BTC/USD pair to climb to about $9,600 — $10,000 after it clears $8566.4. As the price begins to trade above $7,750, the probability of a breakout from the…