“Unlike the internet, which you couldn’t buy a piece of, you can actually buy a piece of this new internet of money,” Tyler and Cameron Winklevoss told CNN.
“It’s still a retail-driven market, from day one. And a lot of people have done really well. Wall Street has been asleep at the wheel,” the twins warned.
Bitcoin’s epic 2017 bull run, which saw the bitcoin price soar from under $1,000 per bitcoin at the beginning of the year to almost $20,000 in December, was largely thought to be due to Wall Street and institutional investment could be poised to flow into bitcoin and crypto.
“We had to invest because we were afraid of missing out, we couldn’t miss out on this future,” the twins added.
Meanwhile, Tyler and Cameron Winklevoss earlier said they are open to partnering with Facebook chief executive Mark Zuckerberg on the social media giant’s libra cryptocurrency project after it was revealed they have been in talks about joining the Libra Association.
The newly-created, independent governance consortium for Facebook’s planned token currently counts 28 founding members but is expected to swell to around 100 by the time of libra’s launch next year.
I am a journalist with significant experience covering technology, finance, economics, and business around the world. As the founding editor of Verdict.co.uk I reported on how technology is changing business, political trends, and the latest culture and lifestyle. I have covered the rise of bitcoin and cryptocurrency since 2012 and have charted its emergence as a niche technology into the greatest threat to the established financial system the world has ever seen and the most important new technology since the internet itself. I have worked and written for CityAM, the Financial Times, and the New Statesman, amongst others. Follow me on Twitter @billybambrough or email me on billyATbillybambrough.com. Disclosure: I occasionally hold some small amount of bitcoin and other cryptocurrencies.
Cameron and Tyler Winklevoss talk with Ben Mezrich and Paul Vigna about Cryptocurrency and the Future of Money. Recorded July 9, 2019 at 92nd Street Y. What do bitcoin, ether, zcash, litecoin and other cryptocurrencies tell us about where capitalism is going next? And how did the Winklevoss twins see it coming? Cryptocurrency has emerged in the last decade as a powerful bellwether for what money might look like in the future—and Cameron and Tyler Winklevoss are leading the way in how it’s being used. Join them for a fascinating discussion along with author Ben Mezrich (Bitcoin Billionaires) and the Wall Street Journal’s Paul Vigna about the origins of Gemini, their cryptocurrency exchange and custodian, and the future of money. Subscribe for more videos like this: http://bit.ly/1GpwawV Your support helps us keep our content free for all. Donate now: http://www.92y.org/donatenow?utm_sour… Facebook: http://facebook.com/92ndStreetY Instagram: http://Instagram.com/92ndStreetY Twitter: https://twitter.com/92Y Tumblr: http://92y.tumblr.com/ On Demand: http://www.92yondemand.org
U.S. equity futures edged higher, potentially lifting Wall Street to fresh record peaks again this week, as investors await the first of six major tech sector earnings reports later today that could make-or-break the recent stock market rally. Here are five things you need to know before the start of trading on Wednesday July 17.
1. Netlfix and FAANG
Netflix (NFLX – Get Report) , the first of the six major tech companies — along with Microsoft (MSFT – Get Report) — in the so-called FAANG complex of stocks will report second quarter earnings after the close trading today, with analysts likely keying on it outlook for online streaming subscriber additions in a suddenly competitive market.
Netflix itself is forecasting online subscriber growth of 5 million for the three months ending in June, a figure that would boost its worldwide total to just under 155 million, but the near-term loss of hits such as ‘Friends’ and ‘The Office’ could take its toll on growth rates in the coming months, as will the addition of rival streaming services from Disney DIS, Apple AAPL, and Comcast (CMCSA – Get Report) .
Microsoft will follow with its earnings report Thursday, while Facebook (FB – Get Report) , Amazon (AMZN – Get Report) , Google parent Alphabet (GOOGL – Get Report) and Apple will all update investors will quarter reports over the next two weeks.
The FAANG stock earnings — which comprise nearly a fifth of the S&P 500’s $26 trillion market cap –are expected to be a crucial test for Wall Street as benchmark test fresh record highs, thanks in part to hopes of deeper monetary support from the Federal Reserve, even as broader corporate profits suggest slowing growth in the months ahead as the U.S.-China trade war takes its toll on American businesses.
Bank of America (BAC – Get Report) will publish second quarter earnings Wednesday, with Morgan Stanley (MS – Get Report) rounding out the sector’s biggest players with three months results on Thursday, as investors digest a mixed bag of readings of the health of the country’s lenders amid a slowing — but solid — domestic economy and the likelihood of even lower interest rates.
Tuesday’s trio of big bank earnings — JPMorgan (JPM – Get Report) , Goldman Sachs (GS – Get Report) and Wells Fargo (WFC – Get Report) — all managed to top Wall Street forecasts for top and bottom line growth, but each signaled concern that Fed rate cuts would likely make near-term profits even more difficult to achieve.
Investors today will be looking at one of the sector’s key measurements — net interest margin — for signs of weakness in not only Bank of America, but also smaller rivals such as U.S. Bancorp (USB – Get Report) , PNC Financial (PNC – Get Report) and BNY Mellon (BK – Get Report) .
3. Bitcoin Bashed
Bitcoin prices tumbled well below $10,000 in overnight trading Wednesday as lawmakers on Capitol Hill grilled big tech executives and hounded social media giant Facebook FB over its plans to launch a its new ‘Libra’ digital currency next year.
Facebook’s unveiling of Libra earlier this month helped bitcoin rise past $14,000 amid a renewed rally in cryptocurrency markets linked to the hope that wider use of various digital coins would allow for faster adoption of bitcoins in everyday transactions.
However, with regulators and central bankers around the world expressing doubts — or outright hostility — to Facebook’s Libra ambitions, and President Donald Trump suggesting cryptocurrencies are “based on thin air”, bitcoin prices have fallen more than $5,000 from their early July peak.
“I know we have to earn people’s trust for a very long period of time,” Facebook’s David Marcus told lawmakers Tuesday. “We know we need to take the time to get this right.”
Marcus will appear before the Senate Banking Committee later today.
4. Oil’s Well?
U.S. oil prices bounced higher in early trading following data late Tuesday from the American Petroleum Institute which showed domestic crude inventories fell by 1.4 million barrels in the week ending July 12. If confirmed later today by the Energy Information Administration, the declines will stretch to a fifth consecutive week, the longest in at least 18 months.
Prices were further pressured by the slow return of production capacity in the Gulf of Mexico, where more than half of the area’s output, or around 1.1 million barrels per day, remains offline in the wake of storm Barry, which hammered the Louisiana coast this past weekend.
WTI futures contracts for August delivery, which typically dictate the direction of U.S. gas prices, were marked 29 cents higher in early New York trading at $57.91 per barrel.
5. Apollo Holo
The Smithsonian National Air and Space Museum will celebrate the 50th anniversary of the Apollo 11 moon landing mission with a with a life-size projection of the Saturn V rocket on the Washington Monument in a three-day tribute to astronauts Neil Armstrong, Buzz Aldrin and Michael Collins.
“The Washington Monument is a symbol of our collective national achievements and what we can and will achieve in the future. It took 400,000 people from across the 50 states to make Apollo a reality,” said Ellen Stofan, the Air and Space Museum director. “This program celebrates them, and we hope it inspires generations too young to have experienced Apollo firsthand to define their own moonshot.”
A 17-minute program outside the Smithsonian Castle, slated for July 19 and 20 will also recreate the Apollo 11 mission’s launch following Congressional approval for the displays earlier this year.
“I don’t feel this time is different. If we have another financial crisis, there isn’t even a plan A. We’re still coming out of the last financial crisis,” Kenneth Rogoff. Are the overheated markets headed towards another financial crisis? Dimensions to be addressed: – Concerns over leverage and liquidity – Implications of passive investing – Transforming financial services business models · Michael Corbat, Chief Executive Officer, Citigroup, Citi, USA · Fang Xinghai, Vice-Chairman, China Securities Regulatory Commission, People’s Republic of China · Anne Richards, Chief Executive, M&G Investments, United Kingdom; Young Global Leader · Kenneth Rogoff, Thomas D. Cabot Professor of Public Policy and Professor of Economics, Harvard University, USA · David M. Rubenstein, Co-Founder and Co-Executive Chairman, Carlyle Group, USA · Jes Staley, Group Chief Executive Officer, Barclays, United Kingdom Moderated by · Tom Keene, Editor-at-Large, Bloomberg Television & Radio, USA http://www.weforum.org/
Bitcoin, ETH, XRP, and LTC prices, will be on a roller coaster for a long time. Traders and investors will make and lose fortunes in record time, betting on them. In the end, say some analysts, these cryptocurrencies will either die on their own, or be killed by the ‘establishment’ — big governments and big banks around the world that defend sovereign currencies.
Take the case for Bitcoin.
The “people’s currency” holds a great promise: to become the first true global currency, free of the control of central banks that print money and big banks that generate credit. But to do that, Bitcoin must gain the trust of the “general public.“ This means it must be adopted as a medium of exchange, standard of value, and store of value, replacing national currencies.That isn’t easy, given the many obstacles Bitcoin has to overcome. Like lack of awareness, familiarity, and stability, etc. And that makes some experts bearish about the future of Bitcoin.
Bitcoin Price YTD
Lars Seier Christensen, Chairman of Concordium, the next-generation decentralized world computer, is one of them. “In the longer term, I am bearish on bitcoin as I believe it does not have the necessary characteristics of a longer-term valuable asset and, eventually, that reality will catch up” says Christensen.“But in the short term, price movements will likely be random as Bitcoin is affected by low liquidity and unpredictable bigger trades.”
Unpredictability will make it hard for Bitcoin to gain broad adoption as a medium of exchange. And without broad adoption, Bitcoin will remain a play for speculators and true believers, and eventually die on its own.
But even if Bitcoin overcomes all these obstacles and gains broad adoption by the general public, and was in a position to replace national currencies — ie, become the new currency — what would happen then?
Bears argue that the “establishment” cannot afford to let that happen.
For a couple of reasons, including the loss of Seigniorage” — simply put, the profit made by the national governments by printing currency. Then there’s the profit made by banks helping circulate that money and create credit.
The establishment will do whatever it takes to defend these profits from Bitcoin and any other cryptocurrency that seeks to replace it.
Recent Congressional hearings on Libra attests to the determination of the establishment to protect the dollar from competing cryptocurrencies. In a rare display of unity, Democrats and Republicans opposed Libra, and had many unkind words for Bitcoin.
“Cryptocurrencies that are ONLY there as a currency substitute, however, have no real long-term future,” says Christensen.“They will be outlawed by governments wanting to control the money supply and taxation, and in any case, cryptocurrencies have no intrinsic long-term value of significance. Hence, Bitcoin will only survive as a fringe activity.”
Not everyone agrees with this gloomy assessment, however. Dave Hodgson, Director and Co-Founder of NEM Ventures, is one of them.
“In my opinion, Bitcoin will never die nor be killed by the establishment, despite some people’s efforts to the contrary,” says Hodgson. “The recent drop we have seen in Bitcoin is within the boundaries of what our analysts were expecting from technical analysis. However, the timescale has been slightly skewed in light of recent announcements, primarily from US government representatives.”
Corentin Denoeud, CEO and Co-founder of Blockchain Studio, is another .
“The fact that governments around the world are even talking about crypto is a sign of progress for the blockchain industry in general,” says Denoeud. “While countries such as India have called for the outlawing of cryptocurrencies, representatives from Germany’s Central Bank have responded favourably and advanced the view that cryptocurrencies are not a threat to global monetary stability. Even China, who has previously banned ICOs and cryptocurrency trading, has called bitcoin a ‘safe-haven asset’ (via its state-run media agency) and is now reportedly stepping up its own efforts to create its own cryptocurrency, following Facebook’s unveiling of Libra.”
While it’s still unclear which side is right, one thing is clear: Bitcoin (and ETH, XRP, LTC, etc) true believers who think that cryptocurrency will eventually replace national currencies, need a 101 lesson in Money and Banking.
I’m Professor and Chair of the Department of Economics at LIU Post in New York. I also teach at Columbia University. I’ve published several articles in professional journals and magazines, including Barron’s, The New York Times, Japan Times, Newsday, Plain Dealer, Edge Singapore, European Management Review, Management International Review, and Journal of Risk and Insurance. I’ve have also published several books, including Collective Entrepreneurship, The Ten Golden Rules, WOM and Buzz Marketing, Business Strategy in a Semiglobal Economy, China’s Challenge: Imitation or Innovation in International Business, and New Emerging Japanese Economy: Opportunity and Strategy for World Business. I’ve traveled extensively throughout the world giving lectures and seminars for private and government organizations, including Beijing Academy of Social Science, Nagoya University, Tokyo Science University, Keimung University, University of Adelaide, Saint Gallen University, Duisburg University, University of Edinburgh, and Athens University of Economics and Business. Interests: Global markets, business, investment strategy, personal success.
Bitcoin and cryptocurrencies have been largely ignored by the world’s regulators over the last ten years, with only some small attempts to protect investors from wild bitcoin price swings and dodgy crypto exchanges.
“If cryptocurrency markets were like the ‘wild west’ in their early years, that period may be coming to a close as lawmakers look to toughen up the way in which markets are policed,” the report authors wrote. “In the meantime, it would be wrong to assume that investigators are powerless in the world of virtual currencies. They have many tools, old and new, at their disposal which mean that cryptocurrency markets should not be seen as a safe hiding place.”
Facebook is still reeling from a data-sharing scandal that saw many of its most senior executives hauled before governments around the world to answer questions on Facebook’s use of data and its work with third parties, such as Cambridge Analytica.
The bitcoin price has rallied hard this year but global regulators are “closing in.”
In the U.K. bitcoin and cryptocurrencies were placed under the oversight of the country’s banking regulator in January with it expected to issue final guidance sometime over the next couple of months.
Meanwhile, a government panel in India has recommended a ban on all “cryptocurrencies created by non-sovereigns” due to “serious concern [there is a] mushrooming of cryptocurrencies almost invariably issued abroad and numerous people in India investing in these cryptocurrencies.”
The report out of India does support the possibility of a state-issued digital currency in India, however.
It seems that the prediction season has begun, with bullish and bearish opinions much more conservative than the ones from the last year. While it is difficult to provide a certain level of strength in the predictions of a market as volatile and young as the cryptomarket, this does not seem to stop analysts and fans from exposing their views to the world…….