Coinbase executive who revealed client data sale leaving firm for Fidelity

Coinbase, one of the leading cryptocurrency exchanges in the United States, was under the microscope of the entire cryptocurrency space when reports emerged that its providers were selling its customers’ data. This news resulted in the firm facing a severe backlash from the community, and importantly, it has failed to address this issue. According to recent reports, Christine Sandler, the Director of Institutional Sales, will be leaving the firm.
Interestingly, Sandler was the representative of Coinbase who revealed the information pertaining to customers’ data being sold by its providers. This statement was made in an interview with Cheddar, where she had revealed that this was the “important” reason behind the exchange acquiring Neutrino, a blockchain analytics start-up.
She had stated:
“Our current providers were actually selling our client data to outside sources and it was really compelling for us to kind of get control over that and have proprietary technology that we could leverage on to keep the data safe and to protect our clients.”
Notably, Sandler would be joining Fidelity Investments, one of the largest financial service providers around the world. Coinbase has not yet released an official statement on Sandler leaving, but a spokesperson confirmed the news to The Block. More so, she will be joining Fidelity Digital Assets as the head of marketing and sales.
A source who spoke to Coindesk said:
“It has become clear that Coinbase is focusing on crypto first and crypto-native hedge funds, and the team that Adam [White, a former Coinbase executive] brought on board was very much focused on the institutional world.”
The person further added:
Christine is part of that; she had decades of experience of working with traditional financial institutions. Her skills are much better suited to a company that is taking that approach – like Fidelity.”
The post Coinbase executive who revealed client data sale leaving firm for Fidelity appeared first on AMBCrypto.
Source: AMB Crypto

One of World’s Most Prominent Asset Managers Fidelity May Soon Take Cryptoland by Storm

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One of World’s Most Prominent Asset Managers Fidelity May Soon Take Cryptoland by Storm
Fidelity may soon enter into the nascent cryptocurrency market in a move expected to turn the tides. the $2.46 trillion behemoth asset manager is taking its time.
One of World’s Most Prominent Asset Managers Fidelity May Soon Take Cryptoland by Storm

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Source: CoinSpeaker

Bitcoin Cash’s [BCH] Roger Ver says altcoins are BTC’s layer two scaling solution

Roger Ver, the founder of Bitcoin Cash [BCH] has been a critic of Lightning Network [LN] since its inception. The Bitcoin hardfork proponent once again bashed the Layer 2 solution for the original Bitcoin core.
The Bitcoin.com CEO tweeted,
“Altcoins became BTC’s layer two scaling solution.”
The crypto community was left puzzled with Ver’s latest post, with many assuming that he was implying Bitcoin Cash was an altcoin. This is not the first time Roger Ver has made confusing statements on social media. Previously, Ver had opined that Bitcoin Cash can do better than all the functionalities of Bitcoin Core.
He has also echoed similar statements to the ones made by Gabriel Cardona, the Director of Developer Services and Head of R&D at BCH, bashing the second-layer network and branding it as an ”absolutely horrible user experience.”
However, the success of the Lightning Torch experiment has reinforced the Bitcoin community’s support and solidarity with the new technology. Many crypto luminaries, including Binance’s Changpeng Zhao [CZ], co-founder of Coinapult, Erik Voorhees, and Twitter’s Jack Dorsey, also participated in this experiment.
Fidelity Digital Assets, the digital assets arm of financial services behemoth, Fidelity Investments, was the first investment bank to receive the Lightning Torch. Acquiring the Lightning Torch from a Bitcoin maximalist marked the foray of the digital asset wing into the cryptosphere. The LN torch wave has crossed approximately 40 different countries, since its inception.
A scalable solution to the Bitcoin core, the Lightning Network, adds a second layer to Bitcoin’s existing blockchain. This allows users on the network to build payment channels between any two individual users on the newly added layer. Since channels are created between two users on the network, transactions will be executed instantly with low or negligible fees. Another noteworthy aspect of the network is that the channels can exist as long as they are required.
Responding to Ver’s tweet, a Twitter user, @francispouliot said,
“Literally not layers of the object but distinct objects from said object. With all the random non-sensical quotes you post, I wouldn’t be surprised if one day you tweeted out a valid nonce.”
Another user, @balthusaur, tweeted,
“All cryptos will be denominated in Bitcoin(BTC). The true king coin that did not elect itself. BCH will always remain an alt coin.”
The post Bitcoin Cash’s [BCH] Roger Ver says altcoins are BTC’s layer two scaling solution appeared first on AMBCrypto.
Source: AMB Crypto

How Rising Bitcoin Holdings of May Push BTC Price Up Significantly

The cryptocurrency industry was born during the fallout of the 2008 economic crisis that caused the Great Recession. Satoshi Nakamoto designed Bitcoin as the first-ever cryptocurrency with the goal of removing the control governments and banks had over individual’s funds.
Nakamoto designed the BTC supply to have a hard cap so that the cryptocurrency would have a deflationary attribute, but the limited supply also has a dramatic effect on Bitcoin price due to the ebb and flow of demand.
Intermediaries currently control as much as 16% of the BTC supply already, just ten years into the crypto’s life, and the percentage of control will only increase from here due to the influx of banks, businesses, and more trying to get a piece of the emerging crypto market.

But what implications will such control over the BTC supply have on Bitcoin price? And does this control go against everything Bitcoin itself stands for?
How Intermediaries Holding BTC Could Affect Bitcoin Price
The value of anything is in a constantly push and pull battle between supply and demand. If an item is scarce and has a high enough demand, its perceived value will increase and those interested in buying the item will be more willing to pay a higher price for the item.
Related Reading | Poll Reveals Majority of Crypto Investors See Bitcoin Price at $100,000 to Millions Long-Term
This is how eBay scalpers are able to charge $1,000 premiums on already expensive iPhones on launch day – there are simply not enough iPhones to go around to those that want them, and some are willing to pay well above retail price in order to own one.
The same is true about Bitcoin. The current bear market is due to Bitcoin’s demand waning, while the supply ever-increases as miners validate each new block on the blockchain. But what happens as other intermediaries such as banks begin to scoop up the BTC supply as the industry grows, and how does this affect Bitcoin price in the future?

at least 16.6% of bitcoin is held by intermediaries, and with all the institutions, banks, and apps that are coming, that number will only go up.
excellent work from my partner @RyanRadloff @CoinSharesCo https://t.co/cruEh24bnU
— Meltem Demirors (@Melt_Dem) March 7, 2019

As was pointed out by CoinShares Chief Strategy Officer Meltem Dimirors who also serves as a member of the World Economic Forum blockchain council, over 16% of the BTC supply is already controlled by intermediaries such as exchanges like Binance, or apps like Abra.
This number will only grow with the launch of Bakkt, Fidelity Digital Assets, and the many other retail and institutional operations that will no doubt enter the cryptocurrency market in the coming months to years.
Related Reading | Fidelity Bitcoin Custody Launched, Is This The End of Personal Integrity?
Bitcoin price should rise significantly due to basic supply and demand. All businesses are driven by demand – they move into markets where they are certain they can make money. Time-tested businesses like Fidelity or Intercontinental Exchange would not be entering the market if they didn’t view it as a viable business opportunity. The demand is there, but what will never change, is the supply of Bitcoin.
Given the simple dynamics behind supply and demand, as these organizations gobble up Bitcoin’s supply and demand rises, an increase in price is a certainty. This certainty is why many in the cryptocurrency community look to the launch of Bakkt or the VanEck/Solid X ETF, both of which require physical Bitcoin, as the catalyst that could ignite the next bull run. These developments are right around the corner.
Intermediaries Holding Bitcoin Goes Against Satoshi’s Vision
While crypto investors would welcome an exponential increase in Bitcoin price, it’s becoming increasingly clear that Satoshi’s original vision for Bitcoin is nothing more than a pipe dream.
The leading crypto by market cap is arguably the most decentralized of any cryptocurrencies.  But as these incredibly wealthy intermediaries come in and scoop up the limited BTC supply, they will have increasing control over Bitcoin in one way or another.
These companies cannot control the Bitcoin network consensus, however, by becoming the primary holders of private keys for their customers and clients, the original goal of Bitcoin being used by individuals to become their own banks and manage their own funds with complete ownership will never fully be realized.
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Fidelity Rolls Bitcoin Custody Service, Are the Institutions Coming?

An official report from Fidelity Digital Assets (FDAS), a financial service giant unveiled the status of their work- per the blog post, FDAS’s Bitcoin custody service is live and running. Although the market has no big turn towards the higher volume but the company attempt to what it was committed despite the bear market trend.
Fidelity’s Bitcoin Custody Business is Live
Consequently, firms’ bitcoin custody business is now live. Nevertheless, the firm is not ready to support Ethereum custody yet, citing that they have already undergone the survey of 450 institutions to assess the market information. According to the announcement, its live bitcoin custody service isn’t for everyone – rather the platform had selected a limited group of eligible clients.

We are live with a select group of eligible clients and will continue rolling out slowly. Our solutions are focused on the needs of hedge funds, family offices, pensions, endowments, other institutional investors. More on our project: https://t.co/EkJ2pWJt2Y #DCBlockchain
— Fidelity Digital Assets (@DigitalAssets) March 7, 2019

Its quite clear that, with the select group of institutions, Fidelity Digital Asset will serve initial services to these groups to kick start. The announcement further reads that FDAS already has strong technical and operational standards – preferable for institutions. However, select clients or institutional clients of Fidelity are a critical part of the ‘final testing and process refinement periods.
“Our mission is much broader than products. Institutional interest in digital assets is expanding, and these organizations require sophisticated capabilities in order to proceed.” Said Tom Jessop, lead at Fidelity
With more and more largest companies (such as Fidelity investment) focusing on long-term visions across the crypto industry – it captures the interest from institutional investors to leverage the bitcoin market. On top of all, few crypto enthusiasts believe entry of players like Fidelity in the decentralized world would eventually urge regulators to focus on better clarity on crypto policies.
Reports further revealed the statement of Tom Jessop who addressed the questions of reporters at the DC Blockchain Summit this week. Responding to reporters, Jessop claims that the bear market hasn’t had an impact over the service launch and in running process as well. He says;
“If you started a crypto fund at the height of the market you’re probably hurting right now.”
At present, Fidelity’s new entity will open up the trade on multiple exchanges for these institutional investors – nonetheless few other services of the firm are still in progress. As discussed earlier, the Fidelity had planned to go live with its new company in the first quarter of 2019 – Indeed, it made possible for few institutional clients in January, for the select group it was in March. Additionally, others will likely access in September as Jessop said.
“If you started a crypto fund at the height of the market you’re probably hurting right now.”
The post Fidelity Rolls Bitcoin Custody Service, Are the Institutions Coming? appeared first on Coingape.
Source: CoinGape

Breaking: Fidelity announces Bitcoin [BTC] custody service live with a select group of eligible clients

Fidelity Investments, the largest asset management firm, digital assets solution branch – Fidelity Digital Assets – announced that its Bitcoin custody service has gone live with “a select group of eligible clients”, earlier today on their official Twitter handle. The firm, aiming at providing custodial services to institutional investors, first made an announcement regarding this news in late January. Here, they stated that have selected clients to whom they will be serving their initial solutions.
The announcement read:
“We are live with a select group of eligible clients and will continue rolling out slowly. Our solutions are focused on the needs of hedge funds, family offices, pensions, endowments, other institutional investors”
The solutions provider had stated that they have built a strong technical and operational standards best suitable for institutions, meeting clients expectations from an investment giant, in their initial announcement. They had also stated that their initial clients are “an important part” of the “final testing and process refinement periods”. This, in turn, would help the Fidelity provide services to a “broader set of eligible institutions.”
The blog post read:
“Our mission is much broader than products. Institutional interest in digital assets is expanding, and these organizations require sophisticated capabilities in order to proceed.”
This comes as a euphoric announcement to several members of the community as it marks as one of the first steps taken to open the cryptocurrency market, especially Bitcoin market, for institutional investors. This is mainly because of the custody solutions and trading venue platform provided by the financial giant. More so, some also believe that the changes bought by institutional players of Fidelity would bring some light in the regulatory stance on Bitcoin and other cryptocurrencies.
XRP Raconteur, a Twitterati said:
“Congratulations FDA on your soft launch. I can’t wait to see your full launch. It’s going to be LOCO !!!”
Alec Ziupsnys, another Twitterati said:
“Fidelity’s digital assets trading and custody business is live and supporting bitcoin. When are institutions joining the game? Well, now. “
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Source: AMB Crypto

Fidelity Digital Assets, in an unprecedented first, takes hold of the Lightning Torch

Fidelity Digital Assets, the digital assets branch of financial services giant Fidelity Investments, in an unprecedented first, has become the first investment bank to receive the torch signaling the entry into the Bitcoin [BTC] payments realm via the Lightning Network.
On February 22, Fidelity Digital Assets, via Twitter, announced that it acquired the Lightning Network [LN] Torch from the Bitcoin maximalist @Wiz. They further posed a question to the cryptocurrency community, asking who should receive the torch next.
The tweet stated:
“We and our research team at the Fidelity Center for Applied Technology have received the #LNTorch from @Wiz. Who should we pass it to? #LNTrustChain”
Wiz, in his tweet, stated that Fidelity’s first transaction is worth 0.0364BTC or 3.64 million Satoshis, which equated to $144 as per the trading price of the top cryptocurrency at press time.
Following the aforementioned announcement, Fidelity Digital Assets answered the question they asked in the earlier tweet. Responding to an LN request, the digital assets wing of the investment bank announced that HBS Blockchain and Cryptocurrency club, a cryptocurrency-centric student club at the Harvard Business School, would receive the Lightning Torch next due to their focus on the research and development of Bitcoin.
The tweet said:
“We have selected @HBSCryptoClub to receive the #LightningTorch, as they continue to enable #bitcoin research and development. Please send us your invoice for 3.65M sats.”
Launched in mid-October, the digital assets centric wing of the investment bank had announced last year that it would launch a crypto-custody solution in early 2019, given the incoming wave of institutional investors. However, during the end of January, Fidelity announced that their custody solution was delayed until March of this year. Furthermore, they announced that the top-two coins, Bitcoin [BTC] and Ether [ETH], would be the first two cryptocurrencies to receive custody support.
Abigail Johnson, the CEO of Fidelity, is a major cryptocurrency proponent and stated during the digital assets wing launch that the company had kept a watchful eye over the cryptocurrency industry for years and that the financial services company has been mining Bitcoin since 2015.
Twitter was ecstatic over the Lightning network announcement, with several users suggesting that this is the institutional swing that many proponents saw would come in 2019.
The official account of the financial markets analytics platform, Trading View, stated:
“Congratulations! It’s the best thing since sliced bread. Everything is fast and simple. Would you be kind enough to pass the torch to our community. It will be an honor for all TradingView members and tech team to participate in the Crypto Olympics.”
A twitter user Beaxy echoed the surprise of many in the crypto-community and stated:
“If you imagined Fidelity receiving a digital bitcoin torch a year ago people would’ve called you crazy! Love to see this”
With the positive-attitude of Tesla CEO Elon Musk towards cryptocurrencies and his bold prediction that digital assets will replace paper money one day, Black Moon Research commented:
“Throw it at @elonmusk
He’s just acting like he doesn’t want it, but he does. ”
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Source: AMB Crypto

Torch Secured: Fidelity Investment’s Crypto Division Joins Bitcoin Lightning Trust Chain

It isn’t a secret that the Lightning Network, a second-layer solution aimed at easing the qualms Bitcoin faces with scalability, has seen monumental levels of adoption as of late. The ecosystem has seen its maximum capacity swell over the 700 BTC milestone, cementing its viability as a system that provides cost-efficient, rapid, secure, and more private transactions.
But this growth hasn’t come unwarranted. Arguably, Lightning’s sudden surge in adoption has much to do with grassroots efforts, like Lightning Pizza and the ever-popular Trust Chain community initiative, launched by HODLnaut just weeks ago.
Related Reading: Buy Pizza With Bitcoin! Crypto Twitter Enamored With Lightning Network App
Fidelity Takes Up The Bitcoin Torch
It appears that lightning has struck once again. This time, Fidelity Investments’ crypto-centric arm, Digital Asset Services, publicly accepted a Lightning Network transaction. On Friday, the cryptocurrency branch of the Wall Street giant, which has approximately $2 trillion in assets under management, joined in on the multi-week Trust Chain fun, accepting a transaction for 3.64 million satoshis.
Fidelity, who has shown a liking to cryptocurrencies and related technologies, is expected to launch its Bitcoin custody offering by March.

We’d be honored if you would pass the #LNTorch to our research arm, Fidelity Center for Applied Tech. We are ready with an invoice for 3.64M sats #LNTrustChain #LightningTorch
— Fidelity Digital Assets (@DigitalAssets) February 22, 2019
For those who missed the memo, Hodlona recently took to his Twitter page to start an interesting community-run initiative. Through the medium of a tweet, Hodl divulged that he wanted Bitcoin users to start a chain through Lightning, whereas participants would send marginally more BTC with each so-called “hop.”
Just hours after Fidelity Digital Assets accepted the torch, it passed it onto the students at Harvard University blockchain club. This is quite fitting, especially considering the hearsay that Harvard’s colossal endowment has allocations in crypto- and blockchain-centric funds.
Harvard’s blockchain club and the aforementioned Wall Street institution join a number of other bigwigs in the cryptosphere that have participated in the Trust Chain, which includes Anthony Pompliano, Klaus Lovgreen, John Carvalho, Marty Bent, leading Bitcoin evangelist Andreas Antonopoulos and Elizabeth Stark of Lightning Labs.
Twitter CEO Enamored With Lightning Tech
Fidelity’s foray into the storm comes after Jack Dorsey, the chief executive of Twitter and Square, effectively embarked on a crusade for this scaling solution.

For the seemingly umpteenth time in weeks, Dorsey has surprised the cryptocurrency space. This time, the Bitcoin fanatic tweeted out the announcement of Tippin, a “game-changer application” that allows social media users on Twitter to get BTC tips for their quips. Alongside the posted link was a simple, yet strong message: “This is excellent.” According to the link that Dorsey broadcasted to his following of millions, Tippin is a Chrome and Firefox browser extension that allows for simple and effective Twitter tipping, giving content creators and personalities the ability to monetize their content further.
Just weeks earlier, he too accepted the torch, hoisting it in the Twitter air after he took to Joe Rogan’s podcast to claim that the native currency of the Internet is likely going to be Bitcoin.
Featured Image from Shutterstock
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The State of Wyoming Passes Three Bills for the Crypto Industry

CoinSpeaker

The State of Wyoming Passes Three Bills for the Crypto Industry

The new bill by Wyoming classifies digital assets as property while legalizing its uses in other blockchain-based financial services.

The State of Wyoming Passes Three Bills for the Crypto Industry

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Source: CoinSpeaker

Mike Novogratz Argues that Bitcoin Will Eventually Become Digital Gold

CoinSpeaker

Mike Novogratz Argues that Bitcoin Will Eventually Become Digital Gold

Mike Novogratz has announced once more that he is confident bitcoin will become a store of value in future even overtaking gold for that purpose to become the ultimate digital gold.

Mike Novogratz Argues that Bitcoin Will Eventually Become Digital Gold

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Source: CoinSpeaker

Mike Novogratz: All the Big Macro Funds Should Hold at Least Small Percentage in Bitcoin

CoinSpeaker

Mike Novogratz: All the Big Macro Funds Should Hold at Least Small Percentage in Bitcoin

Mike Novogratz, the chief executive of the TSX-listed Galaxy Digital, made a surprising remark that came straight out of left field saying that he doesn’t understand why large macro funds don’t have a 1% position in Bitcoin (BTC).

Mike Novogratz: All the Big Macro Funds Should Hold at Least Small Percentage in Bitcoin

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Source: CoinSpeaker

Bitcoin Will Gain More Than 80% Throughout 2019, New Study Explains Why

CoinSpeaker

Bitcoin Will Gain More Than 80% Throughout 2019, New Study Explains Why

Despite the persistent crypto winter, a panel of financial markets analysts in Australia predicted that Bitcoin will rise by over 80% throughout 2018 fueled by several short-term catalysts.

Bitcoin Will Gain More Than 80% Throughout 2019, New Study Explains Why

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Source: CoinSpeaker

Bitcoin Bear Market got Institutional Investors’ interest On its Transformative Potential

Interesting times are ahead as institutional players acknowledge the power of Bitcoin and crypto despite the crypto market crash. With the focus on establishing a standard for the trading venue and custody platform, these players are working on creating a “trusted platform.”
The Potential of Bitcoin & Crypto can’t be Ignored
While Bitcoin crashed over 80 percent in 2018, crypto market attracted institutional interest. In a recently posted video, TD Ameritrade Manager of Trading Strategy Shawn Cruz said that TDA clients’ interest in Bitcoin has rekindled with the drop in Bitcoin price below $4k.
“At TD Ameritrade, we offer Bitcoin futures trading for our clients. We saw them get very interested when we volume spiked when it was around $10,000. On this pullback lower, there really wasn’t much activity from our client base. But now that we’re getting down to this 3 or $4,000 price level on Bitcoin, we’re starting to see our clients become more interested in trading Bitcoin again. So I think it’s going to be interesting to see what Bitcoin does from here.”
Fidelity Investments also stated that they do realize Bitcoin is not the “first form of digital cash” but “we recognize the transformative potential it has created.”
In about mid-January, Adena Friedman, the CEO of Nasdaq had also acknowledged the potential of Bitcoin and cryptocurrencies in one segment of her LinkedIn post titled, “Crypto Currencies Could Still Be a Global Currency of the Future.”
“The invention itself is a tremendous demonstration of genius and creativity, and it deserves an opportunity to find a sustainable future in our economy.”  
Setting Standards for a Trusting Platform
Just recently, it has been also found that Fidelity Investments has reportedly set March the launch date for its Bitcoin custody service.
Now, one of the largest asset managers with $2.46 trillion assets under management, Fidelity Investment is making further progress into the cryptocurrencies space since it made the initial announcement in October. In its latest announcement, the firm shared,
“We have continued to build the technical and operational capabilities needed for securing, trading and supporting digital assets with the exacting oversight required by institutional investors.”
The company is its final testing while “currently serving a select set of eligible clients as we continue to build our initial solutions.” The initial clients of the firm are part of the final testing phase that will enable the company to provide these services to “a broader set of eligible institutions.”
With big institutions at play, a great deal of time is invested in the areas of product, operations, risk, and compliance as Fidelity is actively working on adapting existing operational processes, refine the policies and procedures and  “to set new benchmarks for this aspect of cryptographic and blockchain-based finance.”
The company is working on establishing a standard that is “expected from Fidelity” as the clients it is in conversation with have communicated the need for a “trusted platform provider in order to engage with digital assets in a meaningful way.”
Recently, Bakkt has also shared they are on a hiring spree while making its first acquisition while awaiting regulatory approval from the authorities.
The post Bitcoin Bear Market got Institutional Investors’ interest On its Transformative Potential appeared first on Coingape.
Source: CoinGape

JP Morgan, Fidelity Keep Their Crypto Interest Active While The World Needs to Understand Crypto Nascency Roadblocks – Expert Opinion

“This analysis is an adaptation from the work of Mati Greenspan, Senior Market Analyst at eToro”
Key Highlights

JP Morgan attempts to value Bitcoin Mining Cost in its latest report
Fidelity plans a March Launch of Crypto Custody services
Understanding Crypto Nascency Roadblocks

Wall Street Institutions continue their interests in crypto
Well with Bitcoin ETF now out of the way for a while, direct investment plans of traditional financial institutions may also have gone cold. But the interest in cryptos continues to fuel the fire. JP Morgan recently released the report titled “Blockchain and Cryptocurrencies: Adoption, Performance and Challenges” which speaks about roadblocks to adoption, the recent bear market, scalability issues, and other standard stuff. But the report takes an interesting twist when it tries to calculating bitcoin’s mining costs.
According to JPM’s assessment, it broke down miners into categories and claimed that it is the low-cost miners who set the price floor. Even though there were critics of this method, the JPM assessment looked fine to an extent.

What happens is, mining costs are notoriously difficult to estimate but assuming for argument’s sake these numbers are correct, bitcoin is now below the average mining cost ($4,060). And what the report does indicate is that if the high-cost miners choose to exit, then the low-cost miners will then be competing against each other, which could drive the prices down as far as $1,260. Again, an accurate statement.
The only thing here that JP Morgan fails to take into account is a simple matter of behavioral economics. By their own admission, and included in the graph above, a large number of miners have been operating at a loss for a while now, and hash rates continue to increase even in countries where electricity is more expensive.  Therefore, there isn’t much reason to assume that if someone in the Czech Republic, for example, has been mining bitcoin for $8,000 until now, he’ll suddenly abandon his rig if the price drops another $1,000 or $2,000. Certainly, some will be forced out as nobody can operate at a loss indefinitely, but whoever can afford to will likely hang on for as long as they can.
Fidelity moves ahead with its crypto plans
While JP Morgan continues its homework on bitcoin, Fidelity Investments is targeting a March launch date for its Bitcoin custody service, according to three people with knowledge of the matter, as the mutual-fund giant moves forward with a plan that could help ease fears of trading cryptocurrencies.  The company, in October 2018, had announced that it would offer a range of crypto products designed for large investors like hedge funds.
Understanding crypto roadblocks
If one goes through the JP Morgan report, crypto still has a lot of roadblocks to achieve widespread adoption. One cannot fail to agree with their assessment that world is very much in the early days of the blockchain revolution and it could certainly take time before the full benefits are realized.
However, as investors, one still needs to take into account that all crypto assets are risky. The simple fact is that we’re dealing with very experimental technology and so things can certainly go wrong along the way. This is why it always pays to diversify your investment portfolio and trade in other assets as well.
One example of the way the tech could go wrong was experienced yesterday in the NEO network when NEO’s network got unintentionally forked. Now, without getting too technical it seems that some people running the NEO blockchain weren’t updating properly, possibly due to poor connections, and the entire network was out of sync. In any case, it seems that everything has been resolved by now and the impact on the price was minimal.
While NEO was one example of Nascenscy, Ethereum might run into a bit of difficulty due to the delay of the Constantinople upgrade. It seems that the “difficulty bomb” that the upgrade was supposed to offset has now kicked in and the block reward has dropped by 25%. On the one hand, less supply coming online could increase the price of Ethereum but it seems the hash rate is dropping at the moment. Not to worry though, Vitalik is currently sitting with some of the top devs at Stanford University campus working on the issue. Session recordings are here.

The post JP Morgan, Fidelity Keep Their Crypto Interest Active While The World Needs to Understand Crypto Nascency Roadblocks – Expert Opinion appeared first on Coingape.
Source: CoinGape

Will Fidelity’s New Institutional Crypto Products Boost Markets?

A major financial institution getting involved in cryptocurrencies is usually big news. With the prolonged US government shutdown hampering a number of long awaited crypto funds, large investment companies are seeking alternative ways to enter crypto markets.
Fidelity Crypto Custody Coming
According to Bloomberg Fidelity Investments is planning to launch its Bitcoin custody services in March. The mutual fund giant is hoping to ease the fears that institutional investors may have about the highly volatile and somewhat technical world of crypto trading. The delayed Bakkt and VanEk crypto funds have put the brakes on any hopes investors may have had about entering the space as early as February.
The firm initially announced an array of crypto based products for institutional investors back in October. Citing ‘three people familiar with the matter’ the report added that Bitcoin storage is likely to be the first offering shortly followed by a custody service. An official company statement yesterday added;
“We are currently serving a select set of eligible clients as we continue to build our initial solutions. Over the next several months, we will thoughtfully engage with and prioritize prospective clients based on needs, jurisdiction and other factors.”
The need for crypto custody arises from the risks involved of leaving investments with crypto exchanges. There were a number of high profile hacks during 2018, with Coincheck being the largest at over $500 million. These security breaches do not instill confidence in institutional investors who need to be safe in the knowledge that their crypto investments are securely stashed with a reputable finance firm. Fidelity, one of the world’s largest providers of retirement savings and mutual funds, aims to fill that niche by offering such a service.
It is not the first foray into crypto for Fidelity as CEO Abigail Johnson has been a Bitcoin proponent for several years. The firm’s Fidelity Digital Asset division aims to attract Wall Street whales to crypto markets by offering a safe haven for their assets via cryptographic key management. The company already has a huge reach working with over 13,000 financial institutions.
Fidelity could provide the first serious on-ramp for high rollers with the launch of its services in March. With markets on the floor, now would be a much more lucrative time to get in than in December 2017 when the first two Bitcoin hedge funds were launched by CME and CBOE. Those looking to invest now will be longing for such a product and Fidelity could be the catalyst to start markets moving upwards again.
Image from Shutterstock
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